The New Zealand Dollar (NZD) continues to sell off against a stronger US Dollar (USD) towards pivotal support at 0.6520. Broad concerns over the war in Ukraine and consensus that the Fed will raise rates to curb rising inflation have helped the big dollar of late. Although equity markets had a better session overnight regaining some of the earlier week losses the kiwi still struggled. US Consumer Confidence released slightly down at 107.3 from the 108.5 predicted as expectations of further inflation is on everyone’s minds. US Advanced GDP is expected to print around 1.1% for Q1 compared to 6.9% in the 4th Q which may give the kiwi scope for upside moves. Next week’s calendar is action packed with NZ employment data and US Non-farm payroll releasing. Also, we have the Federal Reserve rate and policy announcement which should give us more clues as to how the Fed will continue to tighten policy. A drop below 0.6500 (Sep 2020 level) may indicate more downside in the cross.
Current Level: 0.6531
Resistance: 0.6700
Support: 0.6520
Last Weeks Range: 0.6625-0.6813