Fundamentals:
RBNZ cuts key rate to 1.5% this morning, as a forecast by most economist. "The monetary policy committee decided a lower OCR is necessary to support the outlook for employment and inflation consistent with its policy remit", the central bank said in a statement. It was also stated that employment is near maximum sustainable level. However, the outlook for employment growth is more subdued and capacity pressure is expected to ease slightly in 2019. However, the RBNZ's statement was not too dovish and left little impression that successive interest rate cuts are in store, as such the NZD pares most of its losses. NZD and AUD are not moving solely on domestic monetary policies, and are also dictated by other factors including US-China trade talks this week. If they are able to come to an agreement before the new tariffs are set in place this Friday, it could help lift the commodity currencies.
Technicals:
Sell Entry : 0.6591
Why it's good: Price is breaking out of a very strong support level which was previously a 38.2% Fibonacci retracement. We can see bearish ichimoku cloud pushing price down too.
Take profit : 0.6472
Why it's good: This is a big fibonacci extension level which price would be attracted to.
Stop loss : 0.6659
Why it's good : Nice 78.6% Fibonacci retracement and horizontal swing high resistance
