It has been a quiet start to the trading week with the US Holiday Monday making for thin market conditions. The New Zealand Dollar (NZD), US Dollar (USD) closed the week around the 0.6100 mark and has meandered its way into Tuesday around the same level. The kiwi does however look a little better bid post the big dollar recent rally. US Producer Prices turned in a flat monthly result but is up 1.8% y/y and follows other strong US data releases. The Fed is in the final stages of getting inflation back to 2.0% target, but the central bank seem uncertain of how restrictive monetary policy needs to be with the jobs market remaining strong. Focus diverts to NZ inflation tomorrow with expectations of further falls 3.3% to 2.3% q/q which could put extra pressure on the NZD. Upside moves look limited past 0.6140 levels.
Current Level: 0.6086
Support: 0.6050
Resistance: 0.6200
Last week’s range: 0.6051- 0.6193