The kiwi is weaker this morning, struggling in the face of an unstoppable US dollar. As economists at ANZ bank note, it is hard to stand in front of the USD train.

Fed Funds rate on a par with NZ’s OCR by month-end

“Hard landing fears are building in the US, as they are here (the US 2yr-10yr curve became more inverted overnight), but the US has an inflation problem amid a still very tight labour market, and that’s likely to see the Fed Funds rate on a par with NZ’s OCR by month-end.” 

 “We expect the RBNZ to be hawkish tomorrow (they can’t afford not to be), but in a world of dollar dominance that may not do a lot for the beleaguered Kiwi, especially amid NZ recession fears.”

“Support 0.5940/0.6100 Resistance 0.6395/0.6575.”