The New Zealand Dollar (NZD) extended last week’s rise from the low of 0.6000 Monday against the US Dollar (USD) edging higher to 0.6160. European and US equities posted gains helping risk currencies to improve. Greenback profit taking has also helped the kiwi recover off the yearly low. The New Zealand economy looks set to possibly avoid dipping into a recession with data out Thursday which should confirm the economy is expected to expand by around 1.0% in the second quarter of 2022. This comes after a contraction in the first quarter of -0.2%. With covid and border restrictions eased the economy has rebounded from the Omicron pandemic. We still have a way to go with ongoing labour and supply chain material shortages. The long-term chart pattern suggests we could see upside to 0.6300 over coming days.
Current Range: 0.6144
Resistance: 0.6420
Support: 0.6000
Last Weeks Range: 0.5996-0.6152