The New Zealand Dollar (NZD) outperformed the Australian Dollar (AUD) for the second week running reaching 0.9180 (1.0890) to start the week. The kiwi perhaps a little overbought at these levels falling lower to 0.9150 (1.0930) early this morning. Chinese data at the end of the week came in mixed affecting the AUD with the economy’s recovery looking bumpy. The main even this week is the RBNZ cash rate and statement with expectations that we should see a remain at 5.5%. Talk around the timing of when the central banks first hike could be interesting, we expect a dovish slant and pending cuts to be bought forward. Pressure this week will be on the kiwi.
Current Level: 1.0920
Resistance: 1.1030
Support: 1.0860
Last Weeks Range: 1.0890- 1.0996