In the aftermath of the Reserve Bank of New Zealand (RBNZ) dropping the cash rate half a cent to 4.25% the New Zealand Dollar (NZD) has been reasonable steady against the US Dollar (USD) pushing higher off 0.5800 style levels to reach 0.5925 at the weekly close. This week’s action has seen the kiwi drop back a little on renewed demand for the greenback with Trump’s warning to the “BRICS” countries against a competing currency to the US Dollar. Adding to the NZD woes was US Manufacturing data which came in above expectations for November, however the industry could encounter uncertainty leading into the new Govt with tariffs in question. The long-term trend in the cross is still very much to the downside. We suggest taking any spikes buying USD.
Current Level: 0.5880
Support: 0.5815
Resistance: 0.5930
Last week’s range: 0.5796 – 0.5928