The New Zealand Dollar (NZD) extended gains against the US Dollar (USD) Monday after initially falling to 0.6200 levels. The kiwi has been bid solid over the last 2 days to post a fresh high of 0.6320 this morning, a 7-week high. Equity markets have been buoyant since early March as well as rallying commodities offering upside momentum for the kiwi. US Manufacturing data printed poor this morning at 46.3 vs 47.5 forecast not helping the greenback. The RBNZ hiked rates just a few minutes ago to 5.25%- this was not expected, sending the NZD north to 0.6370 areas. The central bank says they are committed to lowering inflation back to a 1-3% band. Risky business rising rates hard on the brink of a recession. We said last week we expected the kiwi to retest 0.6400 levels, this is still our order of play and beyond.
Current Level: 0.6349
Resistance: 0.6500
Support: 0.6170
Last Weeks Range: 0.617-0.6296