The New Zealand Dollar (NZD) has been doing well against the US Dollar (USD) recently topping out late last week at 0.6300 before dropping slightly into the close. US Unemployment claims came in light at 251k compared to 240k spooking sentiment- the report hitting a fresh 8 month high. Also of note was softer US PMI data adding fuel to the overall concern of the global economic downturn. The kiwi was back trading around 0.6270 late yesterday boosted by equity markets closing higher. We indicated earlier we expected the kiwi to rise to 0.6300 as it did before tapering off. The 50% retracement area around this level still represents hard resistance. We suspect upside could be limited over the remainder of the week.
Current Level: 0.6259
Last Weeks Range: 0.6139-0.6302