Currencies recovered Monday against the US Dollar (USD) with the greenback sold off in bulk. This is directly correlated to the sharp turnaround of the Yen. The kiwi surged to 0.5935 from 0.5880 post the open and has consolidated around the 0.5920 mark into Tuesday. The key release this week is US CPI with analysts suggesting it could go higher from 3.2% y/y to 3.6%, consensus is if this happens we could see the Fed raise rates in November. With the cross trading at the top of the bear channel this represents decent buy opportunities.
Current Level: 0.5910
Resistance: 0.6380
Support: 0.5850
Last Weeks Range: 0.5857 – 0.5959