New Zealand Dollar faces growing downside risks against US Dollar – Societe Generale

0.5560/0.5550 is the support zone now being tested by NZD/USD, according to Societe Generale analysts. The pair is at the lower boundary of its multi-month range after the RBNZ kept the OCR at 2.75%, against expectations for a 25bp increase. Although the central bank indicated that tighter policy is likely, a breach of this crucial support zone could open the way to further declines towards 0.5480 and 0.5420. Any near-term recovery could face a ceiling at 0.5710.

0.5560/0.5550 Support Zone Faces Pressure

"RBNZ OCR on hold at 2.75%, vote 4-3, consensus was +25bp."

"The committee agreed that tighter monetary policy is likely to be required, depending on the economic outlook."

"NZD/USD is challenging the lower boundary of its multi-month range at 0.5560/0.5550, a crucial support zone."

"A short-term rebound cannot be ruled out; however, the recent pivot high at 0.5710 could act as resistance."

"If the pair fails to defend the support at 0.5560/0.5550, the risk of a deeper downtrend would increase."

"In such a scenario, the next objectives could be located at the April 2025 low near 0.5480 and projections at 0.5420."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)