The New Zealand Dollar (NZD) slumped Monday slipping from 0.6200 to 0.6160 in overnight action against the US Dollar (NZD). This morning the kiwi is a little stronger, consolidating around the 0.6180 area. Although the NZD has held its ground over the past couple of weeks, overall, the cross pressure remains to the downside after stalling in the run up to 0.6370 at year end. We would need a break above 0.6250 to confirm further upside. There is a 25% chance the RBNZ could hike rates from 5.5% tomorrow, we are not in this camp. However, if we see prices push higher towards 0.6200 today/tomorrow, this could imply markets are pricing this in.
Current Level: 0.6169
Support: 0.6050
Resistance: 0.6250
Last week’s range: 0.6107- 0.6217