The US Dollar Index has taken a pounding over the past few weeks falling 6% as the Fed continues with their extremely hawkish monetary policy stance. Equity markets rose overnight pushing up risk products, the kiwi reaching a fresh high of 0.6120 against the US Dollar (USD). Price action into Tuesday suggests the market could still be overreacting to last week’s softer US CPI data, the question is will the kiwi rally hold up, currently trading at a 9-week high. US Retail Sales is expected to be a bumper result printing Thursday. Topside resistance is 0.6160.
Current Level: 0.6094
Resistance: 0.6160
Support: 0.5980
Last Weeks Range: 0.5838-0.6122