After a decent week of improvement for the New Zealand Dollar (NZD) with price extending to 0.4825 (2.0720) late in the week the kiwi has given back most of this move against the British Pound (GBP) to drop back to 0.4790 (2.0870) this morning. NZ’s latest survey of inflation expectations showed a continued moderation in the 2-year forecast which dropped from 2.5% to 2.33% along with the 1 year forecast from 3.22% to 2.73%. This should give relief to the RBNZ as no further hikes should be needed. UK Claimant change should reflect a rise of around 14,000 people to the unemployment numbers in April a rising trend following recent months of numbers looking for work. A retest of 0.4780 (2.0930) this week is our pick.
Current Level: 2.0881
Resistance: 2.1130
Support: 2.0720
Last Weeks Range: 2.0723- 2.0923