Worry around the escalation in geopolitical tension is at the forefront of markets at the moment. Israeli planned attacks of Gaza have been delayed for now. The New Zealand Dollar (NZD) has held strong in the wake of weekend Elections results with the National Party set to replace the current labour government. The kiwi reversed last week’s losses Monday from 0.5880 to 0.5930 into Tuesday trading assisted by a positive start in equities. Earlier, US CPI did the damage with a read of 3.7% up from 3.6% y/y. NZ CPI released this morning, coming in at 1.8% for the third quarter of 2023 ending September adjusting y/y inflation down to 5.6% from 6.0%- a step in the right direction. Topside moves for the NZD this week will be tough with uncertainty out there.
Current Level: 0.5899
Resistance: 0.6000
Support: 0.5870
Last Weeks Range: 0.5883 – 0.6054