The Kiwi attracted sellers in the wake of the RBNZ cut Wednesday after the RBNZ cut the interest rate from 5.25% to 4.75%. Price extended to 0.4630 (2.1585) clearing support around 0.4660 (2.1470), the lowest level since early August levels against the British Pound (GBP). Inflation in NZ sits at 3.3% y/y for the June quarter just above the 1-3% acceptable band. Seems the RBNZ are now convinced inflation is under control with convincing signs its rapidly approaching the mid zone around 2%. Markets are pricing in another 50-point drop at the November meeting which would take the interest rate to 4.25% giving more relief to borrowers and consumers. The cross looks to retest the yearly low at 0.4580 (2.1840).
Current Level: 2.1547
Resistance: 2.1880
Support: 2.1000
Last Weeks Range: 2.1000- 2.1311