The New Zealand Dollar (NZD) outperformed the US Dollar (USD) last week with the run up to 0.6460 a 10-week high. Monday’s risk averse tone has taken price back to 0.6350 this morning when it looks to have consolidated. US CPI surprised markets coming in at 8.5% from the predicted 8.7 much lower than the previous month’s 9.1% 40 year high, offering optimism to risk buyers as the Fed start thinking about re-pricing their upcoming rate hike forecasts. Greenback outflow Monday as poor Chinese data in the form of Industrial production- 3.8% vs 4.6% expected and weaker employment took the kiwi lower. The cross is still trading within its 6-week bull channel but be weary of a continuation of further movement to the downside and a break though channel support at 0.6280. RBNZ is tomorrow with a 50 point move higher to 3.0% widely expected.
Current Level: 0.6360
Last Weeks Range: 0.6228-0.6478