The New Zealand Dollar (NZD) started the week on the backfoot against the US Dollar (USD) dropping to 0.5650 returning profits from late Friday’s squeeze to 0.5770. Risk on sentiment improved amid broad based big dollar weakness into 0.5830. The Fed announced they are well into the late stages of their tightening cycle helping to rally stocks and risk products across the board. Yesterday morning something rare happened in the US treasury yield prices- the 3 year surpassed the 10-year highlighting discouraging signs for the US economy suggesting a recession is close. Meanwhile US consumer confidence data plunged in October, also a barometer for how the Fed goes about tightening policy. We think the NZD may retest 0.5850 resistance this week.
Current Level: 0.5822
Resistance: 0.6000
Support: 0.5650
Last Weeks Range: 0.5546-0.5763