The risk off Friday tone took the New Zealand Dollar (NZD) lower to 0.4615 (2.1670) against the British Pound (GBP) , strange as the Bank of England (BoE) cut rates by 25 points to 4.75%. This must have been fully priced in as markets preferred to buy the Pound. Perhaps the BoE tone surprised markets by saying they see upside inflation risks due to the recent budget. NZ surveyed inflation expectations 1 year out have gone from 2.40% to 2.05% with the 2 year up from 2.03% to 2.12%. The kiwi traded up post the news to 0.4635 (2.1580).
Current Level: 2.1579
Resistance: 2.1900
Support: 2.1350
Last Weeks Range: 2.1513- 2.1778