The New Zealand Dollar (NZD) is in turmoil after falling nearly 1c lower off the open to 0.6250 this morning against the US Dollar (USD), this comes after falls extend last week’s drop from 0.6530 not painting a pretty picture. Global equities have continued to track lower in the aftermath of last week’s surprise hot inflation read which printed at 1.0% m/m in May higher than the forecasted 0.7% as costs in energy, gas and food continue to rise. The safe haven greenback seems to be the “go to” at the moment as investors look to be moving into panic mode as fears of a global recession may not be too far away. Key data out this week is the Federal Reserve statement and Funds Rate with the central bank widely predicted to raise from 1.0% to 1.5%. Long term support at 0.6200 is close by and could be broken this week, this would take us back to May 2020 levels.
Current Level: 0.6267
Last Weeks Range: 0.6349-0.6535