US University of Michigan Consumer Sentiment came in hot Friday with punters more positive around pending economic conditions in the US. This however didn’t help the US Dollar (USD) any extending declines into the weekly close to 0.6050. The New Zealand Dollar (NZD) has welcomed further “risk on” sentiment Monday rising to 0.6115 into early Tuesday trading. US Equity markets and commodity prices remain elevated. As markets increase bets on the Fed cutting rates in September this could undermine the big dollar in the weeks to come as punters turn away from buying treasury bonds. It’s a quiet week on the economic docket for the cross with only US Manufacturing data and NZ retail Sales to focus on. Buying USD above 0.6100 represents extremely good buying right now with big picture moves predicted to depreciate the kiwi in time.
Current Level: 0.6116
Support: 0.6050
Resistance: 0.6170
Last week’s range: 0.5973- 0.6082