The New Zealand Dollar (NZD) came up for air off Monday’s open reaching 0.5630 against the US Dollar (USD). A break higher past 0.5670 is key to solidify momentum to the upside. NZ CPI 3rd quarter came in at a poor 2.2% based on predictions of 1.5% taking the y/y figure from 7.3% to 7.2%- a disastrous release compared to forecasts of 6.6%. The kiwi appreciated 40 odd points and could push higher throughout the day into overnight NY. As sure as the sun will rise the US will enter a recession over the coming months, the timing of this is hotly debated but with inflation persistently high this is causing pain. The forecast for 2023 is looking increasingly gloomy with economists picking growth to contract in the first two quarters of the year, a downgrade from “mild” growth. In the medium term the kiwi may struggle to develop buyer interest with the attractiveness and “safe haven” of the greenback, however with fresh expectations of the RBNZ raising rates higher than predicted this could change.
Current Level: 0.5653
Last Weeks Range: 0.5509-0.5680