The New Zealand Dollar (NZD) bounced higher off 0.8960 (1.1160) the November 2017 low vs the Australian Dollar (AUD) clawing back losses to 0.9050 (1.1050) in early Tuesday trading. The NZ economic growth forecast has been revised lower over the next 3 years. Surveyed economists forecast 2022-2023 growth to expand by 2.9%, 2023 to 2024 period was revised lower to 1.9% from 2.8%. This comes ahead of the quarterly release this Thursday. The Trade Weighted Index (TWI) which is a measure of the overall strength of the NZD against a basket of currencies is also forecast to slump over the coming years. Key Australian employment data is released Thursday with the rate expected to tick down to 3.8% from 3.9%. The cross we suspect may struggle to stay above 0.9000 (1.1100) this week.
Current Level: 0.9037 (1.1052)
Resistance: 0.9150 (1.1160)
Support: 0.8960 (1.0930)
Last Weeks Range: 0.8958-0.9046 (1.1054-1.1162)