Initial gains made by the New Zealand Dollar (NZD) to 0.5770 against the US Dollar (USD) were undone Monday with prices falling back to 0.5730 overnight. NZ Retail Sales q/q printed at 0.9% in December a modest increase from estimates of 0.5%, this is a stark contrast from the early 2021 quarter peak of 8.6%. This plays well for GDP projections with the NZ economy expected to break out of the technical recession when the 4th quarter prints in mid-March. US prelim GDP also prints Friday with no change from the 2.3% number in the third quarter expected. Topside moves could be limited this week.
Current Level: 0.5730
Support: 0.5700
Resistance: 0.5800
Last week’s range: 0.5676 – 0.5771