Early week moves in the Euro (EUR), New Zealand Dollar (NZD) to 0.5465 (1.8300) from the weekly at 0.5480 (1.8250) had the kiwi immediately on the backfoot in a thin week of economic Data. I’m not sure we will see a retest of the low at 0.5425 (1.8430) but we could get close if German prelim CPI y/y comes in below expectations tomorrow. With hikes on the horizon for the Eurozone a poor read could certainly pressure the ECB to tighten policy further at their Sep 15 meeting, this in turn won’t be inspiring for the kiwi.
Current Level: 1.8331
Resistance: 1.8470
Support: 1.8150
Last Weeks Range: 1.8151 – 1.8460