FX News

The New Zealand Dollar (NZD) has moved off lant week’s high at 0.4740 (2.1100) to post 0.4685 (2.1350) last night against the British Pound (GBP) as risk currencies were hit hard off the back of US jobs data. Overnight trading improved the kiwi slightly to 0.4710 (2.1240) as sentiment corrected. UK Construction came in light at 53.6 vs 54.6, despite this the number was seen as positive with sustained increase to business output although the pace of expansion will take time. UK Monthly GDP prints Friday with growth of 0.2% expected considerably better than July’s 0.0%. Risk flows will decide direction in the cross this week.

Current Level: 2.1299
Resistance: 2.1470
Support: 2.1000
Last Weeks Range: 2.099- 2.1297

The New Zealand Dollar (NZD) has moved off lant week’s high at 0.4740 (2.1100) to post 0.4685 (2.1350) last night against the British Pound (GBP) as risk currencies were hit hard off the back of US jobs data. Overnight trading improved the kiwi slightly to 0.4710 (2.1240) as sentiment corrected. UK Construction came in light at 53.6 vs 54.6, despite this the number was seen as positive with sustained increase to business output although the pace of expansion will take time. UK Monthly GDP prints Friday with growth of 0.2% expected considerably better than July’s 0.0%. Risk flows will decide direction in the cross this week.

Current Level: 0.4695
Resistance: 0.4760
Support: 0.4660
Last Weeks Range: 0.4695- 0.4764

The New Zealand Dollar (NZD) continues its bull run higher from the 8 August level of 0.9050 (1.1050) against the Australian Dollar (AUD) reaching 0.9285 (1.0770) into early morning trading. The AUD fells sharply on last week’s disappointing GDP data following a release of 0.2% in the June quarter confirming signs of economic stagnation. The poor growth was largely due to rises in govt funding and tax benefits. Except for covid it’s worth noting that 0.2% growth represents the worse print since quarter 1 in 2011. The RBA now have questions to consider with regards to rising inflation and policy. Chances of no change from the interest rate of 4.35% on the 24th of this month is at 90%. We expect the Aussie to gain on the kiwi this week

Current Level: 1.0838
Resistance: 1.1000
Support: 1.0720
Last Weeks Range: 1.0795 – 1.0904

The New Zealand Dollar (NZD) continues its bull run higher from the 8 August level of 0.9050 (1.1050) against the Australian Dollar (AUD) reaching 0.9285 (1.0770) into early morning trading. The AUD fells sharply on last week’s disappointing GDP data following a release of 0.2% in the June quarter confirming signs of economic stagnation. The poor growth was largely due to rises in govt funding and tax benefits. Except for covid it’s worth noting that 0.2% growth represents the worse print since quarter 1 in 2011. The RBA now have questions to consider with regards to rising inflation and policy. Chances of no change from the interest rate of 4.35% on the 24th of this month is at 90%. We expect the Aussie to gain on the kiwi this week

Current Level: 0.9223
Resistance: 0.9330
Support: 0.9090
Last Weeks Range: 0.9170 – 0.9263

Risk currencies took a hiding Friday off the back of poor US Jobs data, the New Zealand Dollar (NZD) retracing from 0.6250 levels against the US Dollar (USD) to close out the week around 0.6150. Monday action took the kiwi lower to 0.6120 where it sits early in the Tuesday session. Punters are bracing for this week’s US Inflation report for hints that the US Federal Reserve could cut rates 25 or 50 points at next week’s meeting. Last week’s Non-Farm Payroll report showed unemployment fell from 4.3% to 4.2% paring back odds of a 50-point cut perhaps. Pressure remains to the downside for the NZD this week.

Current Level: 0.6134
Support: 0.6100
Resistance: 0.6200
Last week’s range: 0.6154- 0.6253

The ECB meets again to once again decide interest rate/monetary policy for the Eurozone, this coming week. They may well go ahead and make a further rate cut, as stimulus, and because of the positive reaction to the last rate cut. Inflation remains subdued, following the easing in monetary policy, while the EUR actually rallied. The cross may suffer some downside this time around.

The current interbank midrate is: AUDEUR .6065 EURAUD 1.6485

The interbank range this week has been: AUDEUR .6050 – .6145 EURAUD 1.6290 – 1.6520