After a slow start of the week, with little to no movement, Thursday’s US CPI Inflation sparked a rise in risk appetite, with the VIX index trading below 20 for the first time in 4 months. Both the S&P500 and NASDAQ were up over 2%. As always, the kiwi tailcoated on this ride and got past the .6400 level for the 1st time since the start of June, also with a 2% surge. After spending most of this week in the .6250-.6300 range, this was a “break” many were waiting for. But one good CPI does not change the fragile global outlook. Next week’s RBNZ Policy meeting is expected to hike to OCR by 50 bps, this could potentially push the NZD higher again, so buyers of the USD should pay attention.
Current Level: 0.6428
Resistance: 0.6465/0.6525
Support: 0.6210/0.6305
Last Weeks Range: 0.6221-0.6423