NZD/USD - New Zealand Cuts Rates by 50 Basis Points, NZD/USD Rebounds Against Expectations

Fundamental Analysis: 

Yesterday, U.S. housing market data mostly declined, primarily due to the rebound in mortgage rates, which dampened consumer willingness to purchase homes. Although Trump threatened to increase tariffs, it did not cause significant market volatility, as the market expects his remarks to be more of a negotiation tool. Before the tariffs are implemented, their bearish impact on non-USD currencies is limited.

Additionally, this morning, the Reserve Bank of New Zealand (RBNZ) announced a 50 basis points rate cut and indicated plans for further rate reductions next year, citing the expectation of spare capacity in the economy. While the statement was dovish, it did not deviate significantly from market expectations, leading to an NZD rebound driven by a "buy the rumor, sell the fact" reaction.

Technical Analysis: 

On the hourly chart, NZD/USD shows a rebound to new highs after a period of consolidation, potentially indicating stronger buying momentum below. If subsequent support levels hold, the rebound is likely to continue. Therefore, attention can be given to opportunities for buying on dips.

Trading Recommendation:

Entry: Consider going long at 0.5858.

Stop Loss: Below 0.5835. Target: 0.5884–0.5901.

Support Level: 0.5858 Resistance Level: 0.5901

Trading involves certain risks. Recommendations are not guaranteed for profit. Investors should evaluate their own funds and position management carefully.