Recession worries in the USA are at the front of conversation which led to a week of poor performance by the US Dollar (USD) over the past 7 days. The New Zealand Dollar (NZD) dominated moves Monday extending last week’s bull run from 0.6220 to reach a fresh high of 0.6490 before dropping into Tuesday to 0.6430. Risk conditions improved with equity markets and commodities mostly up. Odds are starting to improve for a global recession given massive inflation forecast and rate hikes to follow. Earning of late from retail giants Walmart and Target were down suggesting consumers have pulled back on discretionary items. The RBNZ will raise their cash rate tomorrow from 1.5% to 2.0% to combat rising inflation expected to be well over 7.0% at the July 17 read for the second quarter. For those buying USD don’t bank on the cross going higher in the medium to long term, to be honest current buy levels around 0.6400 look attractive.
Current Level: 0.6433
Resistance: 0.6530
Support: 0.6200
Last Weeks Range: 0.6230-0.6415