The New Zealand Dollar (NZD) progressed to 0.6800 overnight against the US Dollar (USD) dropping back to 0.6770 this morning where it settled. Outperforming its rivals after an extra hawkish RBNZ sparking heavy buyer interest in the kiwi after raising the rates for a third time since October. The RBNZ raised rates 25 points to 1.0% in line with expectations with new forecasted projections of continued hikes to 2.2% by the end of this year reaching 3.3% in the fourth Q of 2023, this is in comparison to its November forecast of 2.6%. The removal of monetary policy stimulus with plans to reduce Govt Bond holdings will also happen over time. US prelim fourth quarterly GDP prints Friday with expectations of a print around 7.0% with a significant increase in economic growth in the past 3 months. A full-scale Russian invasion on Ukraine will almost certainly send the kiwi lower. Taking risk off the table and buying USD now may be the way to go.
Current Level: 0.6763
Resistance: 0.6850
Support: 0.6700
Last Weeks Range: 0.6591-0.6726