After a shaky start to the week with the US holiday creating thin trading conditions the New Zealand Dollar (NZD) has managed to hold gains made last week consolidating around the 0.5740 area. Soft US Retail Sales generated bids for the NZD along with a jump in dairy prices. Currently the cross in trading just off the yearly high of 0.5750 and looks like it could retest the 18 Dec high circa 0.5790. This week’s main news comes in the form of the RBNZ cash rate announcement and statement. A cut to 3.75% is widely predicted with a small chance we could see a 75-point shift. Most of this expectation is largely baked into the current price however we could still see a significant shift lower around the announcement. Buyers of USD should consider these levels and take out “risks” before Wednesday RBNZ.
Current Level: 0.5727
Support: 0.5600
Resistance: 0.5780
Last week’s range: 0.5599 – 0.5736