The decline in the NZD continues, triggered by the RBNZ newfound religion of rate cutting, but accelerated by the surge in the strength of the US Dollar. US Bond Yields have been the story of the week in markets, which continue to defy and contradict the Fed, who aggressively cut rates by 50 basis points, as a US Presidential Election bonus. US 10-Year bonds have surged to 4.25%, despite the Fed’s rate cuts, and clearly dovish monetary stance. This has boosted the reserve and forced the NZD back under 0.6000. The US election is fast approaching, which will influence markets, while other Geo-Political events have the capacity to cause upheaval.
Current Level: 0.6005
Support: 0.5900
Resistance: 0.6200
Last week’s range: 0.5990- 0.6060