The New Zealand Dollar (NZD) looked good Monday rising to 0.5870 against the US Dollar (USD) but stalled around this area as markets turned “risk off” and the kiwi was sold. Global uncertainties in Gaza are attributing to broad buying of USD, the kiwi easing lower into Friday clocking 0.5775 a 1 year low in the pair. A flurry of US data in the form of Durable Goods, advance GDP, 4.9% q/q vs 4.5% forecast, jobless claims and pending home sales have held up the greenback. On the docket next week, we have NZ jobs numbers, unemployment is predicted to rise from 3.6% and key Fed Funds Rate announcement, we expect the Fed to leave rates unchanged at 5.5%. In a very bear market, we expect the kiwi to fall further from current levels. If we look at the chart we see thin air to support at 0.5550. I know it hurts to buy USD at these levels but many need to consider that in several weeks/months we could be staring down the barrel.
The current interbank midrate is: NZDUSD 0.5820
The interbank range this week has been: NZDUSD 0.5772- 0.5869