The New Zealand Dollar (NZD) continues to struggle against the US Dollar (USD) dropping to 0.6080 Monday. The cross has traded in tight ranges with the US markets on holiday. Risk off plays could dominate the cross this week with bigger picture themes dominating and not a lot of key data releasing. Non-Farm Payroll came in better than predicted at 315k vs 295k, but the excitement was short with the Unemployment Rate rising off 3.5% to 3.7%. The drum tight jobs market the Fed has been relying on threatens policy. There are currently 2 jobs for every 1 person looking, because of this, employers are needing to put up wages to attract candidates. This isn’t good for the Fed’s grand plan, to fight inflation they need to cool the economy – with bigger pay cheques this does the opposite. ISM Manufacturing prints tomorrow. The base of 0.6050 could act as support for a while, a technical rebound to 0.6220 is a possibility.
Current Level: 0.6107
Last Weeks Range: 0.6050-0.6193