The New Zealand Dollar (NZD) retreated to 0.6160 this morning against the US Dollar (USD) as a risk off tone engulfs markets. The recent move from last week’s 0.6440 high is decent as momentum is firmly with the greenback with investors exiting the kiwi. US Stocks clocked losses between 2-3% in overnight trading following talk of much higher inflation warnings. Fed officials are to blame for a chunk of greenback support of late post the recent encouraging lower read with US inflation, however it’s far too early to come to any conclusion over whether inflation has spiked just yet. It’s a thin week of data releases, our focus will be on NZ Retail Sales Thursday and Fed’s Powell speaking late in the week at the Jackson Hole Symposium. On the chart a drop through 0.6100 looks dangerous- the May 2020 low, a break past support here and its thin air until 0.5650.
Current Level: 0.6179
Resistance: 0.6350
Support: 0.6100
Last Weeks Range: 0.6165-0.6453