FX News

The New Zealand Dollar (NZD) continues to slide lower against the US Dollar (USD) extending mid week’s slump off 0.5945 to clock 0.5885 this morning. Concerns around the global economy this week has increased amid softer data releasing. US Advance GDP came in at 2.8% in Q2 up from 1.4% in Q1 showing consumer spending rose faster than expected led by motor vehicles and recreational goods. The kiwi looks delicately balanced around 0.5880 mid-morning the long-term support area, a break past 0.5860 of Mid-April could see the NZD battle to hold 0.5800.

The current interbank midrate is: NZDUSD 0.5886

The interbank range this week has been: NZDUSD 0.5877- 0.6028

The New Zealand Dollar (NZD) broke the 2-week range trend posting 0.9060 (1.1035) Thursday against the Australian Dollar (AUD) but wasn’t able to hold this area with the AUD reversing losses to push back Friday to 1.1105 (0.9005). We get the feeling the cross should be well into the 89’s with recent weakness but since the AUD has also struggled this week we haven’t seen big swings. Australian Iron Ore prices and weakness in the Chinese economy have been a contributor to recent Aussie weakness. The RBA remains reluctant to move interest rates due to stubborn inflation which could appreciate the AUD in the next while.

The current interbank midrate is: NZDAUD 0.8990 AUDNZD 1.1112

The interbank range this week has been: NZDAUD 0.8980- 0.9062 AUDNZD 1.1034- 1.1135

The British Pound (GBP) climbed to 2.1825 (0.4580) against the New Zealand Dollar (NZD) in morning signalling the pair will close at its highest weekly level since February 2016. UK PMI’s came in solid in contrast to weakening eurozone data leading to the Pound outperforming the kiwi. Next week’s economic docket has the Bank of England (BoE) monetary policy where the BoE will look to cut rates to 5.0% from 5.25%. Most of this will be priced into the NZD/GBP but we should certainly get a reversal higher from the NZD.

The current interbank midrate is: NZDGBP 0.4579 GBPNZD 0.6859

The interbank range this week has been: NZDGBP 0.4574- 0.4666 GBPNZD 2.1428- 2.1861

We have witnessed a massive Euro (EUR) correction over the past 2 weeks with the currency reversing off 0.6230 (1.6050) to trade back at 0.6100 (1.6400) this morning. Risk flow has been a big catalyst, along with poor Chinese data of late contributing a sizeable portion of the Aussie downturn which could continue. German and French Manufacturing prints tonight and should highlight a weakening sector.

Current Level: 1.6412
Resistance: 1.6470
Support: 1.6300
Last Weeks Range: 1.6051- 1.6282

We have witnessed a massive Euro (EUR) correction over the past 2 weeks with the currency reversing off 0.6230 (1.6050) to trade back at 0.6100 (1.6400) this morning. Risk flow has been a big catalyst, along with poor Chinese data of late contributing a sizeable portion of the Aussie downturn which could continue. German and French Manufacturing prints tonight and should highlight a weakening sector.

Current Level: 0.6093
Resistance: 0.6135
Support: 0.6070
Last Weeks Range: 0.6141- 0.6230

The Australian Dollar (AUD) has been sold off hard on the weekly open against the British Pound (GBP) extending last week’s declines to reach a fresh 3 month low of 0.5140 (1.9460) this morning. UK Retail Sales came in poor at -1.2% for the month of June after solid growth in May of 2.9% as households become cautious. The data had minimal effect on the cross as markets have been “risk averse” on the fallout of Biden exiting from the presidential race. UK Manufacturing prints later today, expected to come in decent and give the Pound a further boost.

Current Level: 1.9489
Resistance: 1.9400
Support: 1.9350
Last Weeks Range: 1.9121- 1.9358