The NZDGBP cross rate has been in steep decline all of 2024. The year kicked off with the NZD buying close to 50 Pence/NZ Dollar. It has been in decline ever since, falling back to 0.4800. This is almost entirely due to the weakness of the KIWI, as the Bank of England has been steadfast in their battle on inflation. The weakening cross rate is likely to continue into
the near future.
Current Level: 2.0863
Resistance: 2.1052
Support: 2.0408
Last Weeks Range: 2.0491- 2.0703
The NZDGBP cross rate has been in steep decline all of 2024. The year kicked off with the NZD buying close to 50 Pence/NZ Dollar. It has been in decline ever since, falling back to 0.4800. This is almost entirely due to the weakness of the KIWI, as the Bank of England has been steadfast in their battle on inflation. The weakening cross rate is likely to continue into the near future.
Current Level: 0.4793
Resistance: 0.4900
Support: 0.4750
Last Weeks Range: 0.4830- 0.4880
The cross rate had reached highs of 0.9450, in February, leading into the latest RBNZ Rate Decision. The NZ Central Bank’s ‘dovish’ stance has allowed the cross rate to drift off recent highs, to trade back to 0.9350. The cross rate was softer due to the RBNZ dovish sentiment, but markets will be watching the Australian GDP growth number for direction, set to be released this Wednesday.
Current Level: 1.0670
Resistance: 1.0800
Support: 1.0580
Last Weeks Range: 1.0590- 1.066
The cross rate had reached highs of 0.9450, in February, leading into the latest RBNZ Rate Decision. The NZ Central Bank’s ‘dovish’ stance has allowed the cross rate to drift off recent highs, to trade back to 0.9350. The cross rate was softer due to the RBNZ dovish sentiment, but markets will be watching the Australian GDP growth number for direction, set to be released this Wednesday.
Current Level: 0.9355
Resistance: 0.9450
Support: 0.9300
Last Weeks Range: 0.9330- 0.9440
The NZ Dollar continues to trade around the fallout from the last ‘dovish’ RBNZ Interest Rate Decision. The RBNZ left rates unchanged and held the narrative ‘higher for longer’, but deductions are that the probable next rate move from the Central Bank, will be to cut rates. The currency has been testing 2024 lows, of 0.6050 recently, and may go lower if the
Federal Reserve Chairman Powell continues the hawkish narrative in his appearance before Congress later in the week.
Current Level: 0.6085
Support: 0.6050
Resistance: 0.6150
Last week’s range: 0.6060- 0.6115
Tuesday March 5
12.30 pm JPY Tokyo Core CPI
Forecast 2.50%
Previous 1.60%
2.45pm CNY Caixin Services PMI
Forecast 52.9
Previous 52.7
5.00pm JPY BoJ Gov Ueda Speaks
Wednesday March 6
4.00am USD ISM Services PMI
Forecast 52.90%
Previous 53.40%
1.30pm AUD GDP q/q
Forecast 0.30%
Previous 0.20%
10.30pm GBP Construction PMI
Forecast 49.00%
Previous 48.80% Read more
The AUD has been faring badly against the USD, battered by the ‘hawkish’ approach to monetary policy by the Fed and the mixed messages emanating from the RBA Governor. Australian inflation has been falling steadily and the latest reading of 3.4% was steady, despite projections of a spike back upwards. The RBA Governor have been all over the shop in recent times, but it will be the grim determination of a ‘hawkish’ Federal Reserve that controls the AUD.
The current interbank midrate is: AUDUSD .6508
The interbank range this week has been: AUDUSD .6484 – .6565
The AUD has tumbled against the GBP for the whole of 2024, falling from highs of 0.5350 in January, to trade around today’s 0.5125. Interest rate differentials drive this price action and the Bank of England appear committed to their tight monetary policy. The UK is in recession but has green-shoots of growth, allowing some leeway for the Bank of England. The AUD has been undermined by less certainty from the Central Bank. Growth and inflation remain key to both currencies, so data will be watched closely in the coming week.
The current interbank midrate is: AUDGBP .5154 GBPAUD 1.9402
The interbank range this week has been: AUDGBP .5129 – 5184 GBPAUD 1.9287 – 1.9490
The AUD/EUR has been weakening all of 2024, from highs in January of just below 0.6200, to testing of the ‘Big Figure’ of 0.6000, to the downside. The inherent weakness of the commodity currency has driven the fall, while the ECB’s reticence to alter tight monetary policy, is a direct result of the fear of resurgent inflation. Germany is now in recession and many other member states are in the same boat, which has aided in the war on inflation, but at some time, the economic pain must be addressed with pressure to lower interest rates. The question is whether the RBA will blink before the ECB?
The current interbank midrate is: AUDEUR .6018 EURAUD 1.6616
The interbank range this week has been: AUDEUR .5993 – .6066 EURAUD 1.6484 – 1.6684
The Bank of England has been very hawkish in their approach to interest rates, holding them at high levels, despite precipitous falls in their inflation levels. This has ensured the strength of the GBP against the NZD, which has weakened from highs of just below 0.5000, to be trading around 0.4800 v the NZD. This downside bias is likely to continue into the near future, as the GBP remains supported by their Central Bank policy.
The current interbank midrate is: NZDGBP .4822 GBPNZD 2.0738
The interbank range this week has been: NZDGBP .4802 – .4898 GBPNZD 2.0416 – 2.0821