The RBNZ seems to have made a quick one-week turnaround after its meeting last week where Governor Graeme Orr suggested the possibility of negative rates. Yesterday, RBNZ Chief Economist Yuong Ha said that they expect to hold the OCR (Official Cash Rate) at its current level until March 2021. The lift in risk assets overnight as well as the broad based weaker US Dollar also boosted the Bird. Meantime New Zealand’s key dairy producer Fonterra, the largest milk producer in the world, reduced its forecast for milk prices for 2019-2020.
NZD/USD finished at 0.6147 (0.6077 yesterday). The Kiwi traded to an overnight and near two-week high at 0.61579. Immediate resistance lies at 0.6160 followed by 0.6200. Immediate support can be found at 0.6110 followed by 0.6080 and 0.6030. Less than a week ago, the Kiwi traded to 0.5920. Its difficult to get carried away up here, someone will shoot the Bird back down to earth. Likely range today 0.6060-0.6160. Prefer to sell rallies.