The New Zealand Dollar (NZD) was higher off the weekly open against the US Dollar (USD) pushing to 0.5845 this morning as it extends the rally from last week’s low at 0.5770. We are not sure how much this upside wave has in it with geopolitical risks heating up, but a decent enough level to buy USD at, all things considered. For now, risk appetite has improved based on the Gaza/Israel situation. Equities, commodities, and futures markets were all higher overnight while the safe haven “gold” has fallen back along with Crude Oil -3.5%. It’s a big week of economic data on the docket with NZ employment data releasing tomorrow, unemployment is expected to rise from 3.6% to 3.9%. If the figure comes in low we may see more talk around the RBNZ needing to hike again. The Federal Reserve will announce no change from the 5.50% interest rate before Non-Farm Payroll (NFP) release Friday night. Certainly, anything north of 0.5850 represents decent buying of USD.
Current Level: 0.5838
Resistance: 0.6000
Support: 0.5770
Last Weeks Range: 0.5772 – 0.5871