The New Zealand Dollar (NZD) slumped off 0.6000 numbers to post 0.5910 against the surging US Dollar (USD) overnight as US elections came in. The greenback made big moves across the main board as news of a new Trump led government became reality. The Republican party has gained enough support in both the US Senate and US Congress, this making it easier for the new president to implement “Dollar” positive economic plans such as lower taxes and tariffs. His policies will most likely lead to increased spending impacting inflation. Tomorrow morning’s Fed meeting markets have priced in a 25-point cut to 4.75% but past this point cuts look shady. Long term support in the cross still sits at 0.5850 the lows from late July and mid-April, we pick a retest of this zone in the coming weeks.
Current Level: 0.5942
Support: 0.5850
Resistance: 0.6200
Last week’s range: 1.6300 – 1.6598