The RBNZ delivered a 50-point cut to their interest rate yesterday as predicted sending the New Zealand Dollar (NZD) lower across the board and towards 0.9020 (1.1085) against the Australian Dollar (AUD). We have been suggesting for several weeks now how the kiwi looks overvalued. Turns out we have been correct; prices could drop into the high 80’s prior to the weekly close. Also factoring in another 50-point cut by the RBNZ at their late November meeting we could see the NZD continue to sell off.
Current Level: 1.1066
Resistance: 1.1150
Support: 1.1030
Last Weeks Range: 1.0864 – 1.1048