The New Zealand Dollar (NZD) continued its upward trend Monday as risk markets improved, against the US Dollar (USD) price reached the lofty heights of 0.6106. We expect the kiwi to stall out around these levels as it approaches oversold status in the face of the RBNZ rate announcement tomorrow. A break above 0.6115 could signal a further run north. The key release this week is the RBNZ cash rate and policy statement- we expect the RBNZ to keep the interest rate unchanged at 5.50%. Comments around easing policy and rate cuts will no doubt be on the agenda, if forecasts for future rate hikes are brought back from late next year we could see the kiwi spike. The pair is trading bang on the 50% fib level at 0.6100 we feel price could reverse lower into the close of the week.
Current Level: 0.6101
Resistance: 0.6400
Support: 0.5800
Last Weeks Range: 0.5995 – 0.6085