This cross has been choppy over the past 4 weeks, but the overall trend has been NZD supportive with price coming from 0.4580 (2.1840) late October to 0.4655 (2.1490) this morning. NZ Retail Sales came in at -0.1% for the September quarter, while we have been unable to work out how this is possible. According to our retail clients they are battling to break even – sentiment is certainly not represented by a -0.1% read. Tomorrow’s RBNZ should cut half a cent to 4.25% – possibly 75 points to 4.00%. We expect to see 4.00% with further slippage in the NZD.
Current Level: 2.1510
Resistance: 2.1780
Support: 2.1430
Last Weeks Range: 2.1407- 2.1625