FX News

The New Zealand Dollar (NZD) extended moves higher Monday against the Australian Dollar (AUD) to 0.9090 (1.1000) the 3rd week straight from 0.8950 (1.1170) the kiwi has outperformed. NZ Manufacturing climbed from -1.2% in the 3rd quarter to 1.1% in the 4th quarter helping to improve the NZD.  Technically we need to see a break above 0.9090 (1.1000) before further upside is possible. With no economic data due this week we suspect further range bound trading will be the theme.

Current Level: 1.1020
Resistance: 1.1100
Support: 1.1000
Last Weeks Range: 1.0975 – 1.1105

The New Zealand Dollar (NZD) extended moves higher Monday against the Australian Dollar (AUD) to 0.9090 (1.1000) the 3rd week straight from 0.8950 (1.1170) the kiwi has outperformed. NZ Manufacturing climbed from -1.2% in the 3rd quarter to 1.1% in the 4th quarter helping to improve the NZD.  Technically we need to see a break above 0.9090 (1.1000) before further upside is possible. With no economic data due this week we suspect further range bound trading will be the theme.

Current Level: 0.9063
Resistance: 0.9090
Support: 0.9010
Last Weeks Range: 0.9004 – 0.9111

US Non-Farm Payroll came in light Friday sending the New Zealand Dollar (NZD) lower to 0.5700 against the US Dollar (USD). Monday’s action saw the kiwi claw back loses to 0.5740 but was unable to hold this area as US equities markets plummeted. The Nasdaq is down 3.65% this morning as uncertainty around the US economic outlook starts to filter into price action. Fed’s Powell remarked Friday that the central bank sees no urgent need to change policy, this may all be about to change with the aimless on- again- off- again tariff policy. All eyes will be on US CPI Thursday morning.

Current Level: 0.5691
Support: 0.5570
Resistance: 0.5760
Last week’s range: 0.5575 – 0.5758

The Australian Dollar (AUD) has been the beneficiary of a tumbling reserve currency, but the cross rate with the Euro (EUR) has been tight, due to corresponding rises in the EUR. The range has been 0.5844 (1.7110) and 0.5990 (1.6700) and this despite a 25 basis-point rate cut from the ECB. The ECB have declared victory over inflation, despite signs of recent reversals in falls, as deep and extended recession takes its toll. The ECB has cited concerns over the impact of the US instigated global trade war.

Current Level: 1.7044
Resistance: 1.7180
Support: 1.6760
Last Weeks Range: 1.6716- 1.7107

The Australian Dollar (AUD) has been the beneficiary of a tumbling reserve currency, but the cross rate with the Euro (EUR) has been tight, due to corresponding rises in the EUR. The range has been 0.5844 (1.7110) and 0.5990 (1.6700) and this despite a 25 basis-point rate cut from the ECB. The ECB have declared victory over inflation, despite signs of recent reversals in falls, as deep and extended recession takes its toll. The ECB has cited concerns over the impact of the US instigated global trade war.

Current Level: 0.5867
Resistance: 0.5965
Support: 0.5820
Last Weeks Range: 0.5845- 0.5982

The cross rate between the Australian Dollar (AUD) and the Great British Pound (GBP) has traded between 0.4875 (2.0515) and 0.4955 (2.0180), working in tandem, and ignoring the plunging US Dollar. Markets have been dominated by fears over tariff wars and the war drums being beaten by the British PM. Defence and aid spending are on a sharp incline, and this will be funded by extended deficit and debt. The UK remain in a precarious economy position and appear to be on a downward spiral.

Current Level: 2.0354
Resistance: 2.0800
Support: 1.9890
Last Weeks Range: 2.0179 – 2.0514