The New Zealand Dollar (NZD) continues to decline against the US Dollar (USD) reaching a new low Monday of 0.5928 well below the key level at 0.6000 we have been watching. The latest run down in global sentiment shook the kiwi after being hit hard by last week’s stronger than expected US CPI data. Solid NZ data of late hasn’t helped with more downside expected. This week’s Federal Reserve meet should bring a further 75 points hike to their interest rate with chances of a 100-point rise to 3.5% possible. The recent higher August CPI report which saw the rate jump from expectations of 8.1% to 8.3% has led the market to price chances of a 100-point hike. The overall response will depend on where they see the inflation heading.
Current Level: 0.5963
Last Weeks Range: 0.5938-0.6158