The New Zealand Dollar (NZD), US Dollar (USD) had a quiet finish to the week closing around 0.6015 and has travelled into Tuesday around similar levels. Yesterday’s NZ 2-year inflation expectations printed at 2.33% down from 2.5% with the 5-year expectation remaining at 2.25%. Unemployment is predicted to rise to 4.9 in 1 year and drop to around 4.79% in two years. All eyes are on Thursday’s US inflation y/y read with the number expected to dip from 3.5% to 3.4%. US presidential elections start in early November, we expect the Fed to have started their rate cutting before then. We predict the kiwi to test the 0.6100 area over the week.
Current Level: 0.6012
Support: 0.5880
Resistance: 0.6060
Last week’s range: 0.5979- 0.6039