Soft US data of late has been positive for the New Zealand Dollar (NZD) rallying the cross to 0.6150 levels early week. A bout of risk off flow since has seen the kiwi drop back towards 0.6120 into Tuesday. Repricing of Fed expectations has the central bank now predicted to cut rates from September. RBNZ is tomorrow with no change expected from 5.5%, however we could see talk of a struggling economy and possibly early 2025 cuts bought forward. Also, on the docket this week is US CPI with 3.1% forecast – down from May’s 3.3%, it won’t be enough. We see chances the kiwi could retest lows around 0.6050 over the week.
Current Level: 0.6131
Support: 0.6050
Resistance: 0.6200
Last week’s range: 0.6046- 0.6147