The global risk off theme sank the New Zealand Dollar (NZD) in overnight trading, in fact it was immediately on the backfoot post the weekly open travelling from 0.6080 (1.6450) levels to 0.6000 (1.6690) at the time of writing. Pivotal and physiological 0.6000 may hold for now but I wouldn’t put money on a reversal in the short term with the momentum building for further NZD declines. Equity markets remain under selling pressures as global inflation and supply issues weigh heavy. NZ inflation expectations q/q is the calendar highlight this week; we should get a better picture of where inflation could go over the coming years.
Current Level: 0.5956 (1.6790)
Resistance: 0.6040 (1.6830)
Support: 0.5940 (1.6550)
Last Weeks Range: 0.6065-0.6180 (1.6181-1.6488)