Massive support for the US Dollar (USD) of late has seen the New Zealand Dollar (NZD) sold down to 0.6412 in early morning trading, the lowest level since late June 2020. Risk flow hasn’t been kind to the kiwi in the wake of equity markets extending losses. Broad concerns over the war in Ukraine remain as UN backed “safe passage” has seen people evacuated from under the steel mill in Mariupol even though the Russians are still shelling the plant. Meanwhile Russia is making little progress in Dondas as meetings take place in Brussels to discuss further imports of Russian oil. The Federal Reserve meet this week to talk over policy with predictions they will raise the cash rate from 0.50% to 1.0% as Powell is set to go large on maintaining some sort of control over rising inflation. He may even hint as to how high interest rates will go as he manages overheating prices. Later in the week is the all-important US Non-farm Payroll release, this could rub salt into the NZD wound. On the chart we see little in the way of key support at 0.6250.
Current Level: 0.6458
Last Weeks Range: 0.6450-0.6644