The New Zealand Dollar (NZD) has sunk to 0.6055 in morning trading against the US Dollar (USD) after some intense selling pressures. The Reserve Bank of New Zealand (RBNZ) cut interest rates by 0.50% to 4.75% yesterday. It’s clear now that the New Zealand economy is weakening significantly, however the RBNZ suggested inflation would return to the mid 1-3% target soon. Markets expect the central bank to reduce interest rates again at their November 27 meeting. We don’t see a lot of support on the chart down to 0.5850 levels- the late July low. If the kiwi can stay above 0.6000 for the next couple of days it will be a small miracle.
Current Level: 0.6066
Support: 0.6000
Resistance: 0.6200
Last week’s range: 0.6144- 0.6379