The New Zealand Dollar (NZD) has traded into Tuesday to the top of the 10-day range. The US Dollar (USD) underperformed on recent Fed speak. Equities have also helped the NZD together with solid local data of late. Chances are post the NZ budget spend up that we could see a 50-point hike to the RBNZ cash rate Wednesday to 5.75% instead of just 25 points. The US debt ceiling negotiations resume today with Biden asking Republicans to compromise above the current cap of around 31.4tn, failure to do this could result in the US defaulting on its debt obligations. Although a rise of 25 points tomorrow is mostly priced in, 50 points won’t be. A dovish Fed and a perky NZD could be captivating.
Current Level: 0.6300
Resistance: 0.6370
Support: 0.6180
Last Weeks Range: 0.6184-0.6304