The New Zealand Dollar (NZD) has continued its decline against the US Dollar (USD) off the open reaching 0.5870 in early morning. The overall trend in the pair is to the downside with recent moves to 0.6000 stalling out. Equity rises in early November supported the kiwi but as mood sentiment shifts globally the kiwi remains under pressure. US CPI holds our attention tomorrow, a key driver of the greenback. Expectations are for a drop from 3.7% y/y to 3.3% in the third quarter, questions around if the Fed have “done enough” will be tested. The Federal Reserve has been the most aggressive of the central banks of late. A break below massive support at 0.5770 just 1 cent away could spell further falls in the cross.
Current Level: 0.5881
Resistance: 0.6000
Support: 0.5800
Last Weeks Range: 0.5877 – 0.6000