Last week’s long positions in the New Zealand Dollar (NZD), British Pound (GBP) cross have been unwound this week with the kiwi giving back gains from 0.4565 (2.1900) levels to 0.4540 (2.2030) this morning. A big part of this will be the RBNZ cash rate tomorrow, the central bank is expected to cut interest rates 50 points to 3.75%. What will be interesting is the ongoing position by the RBNZ and whether they will maintain or get more aggressive for the remainder of 2025. Currently we only have 100 points priced in. Tomorrow’s UK Inflation could tick higher to 2.8% in January from 2.5% y/y and could spike the Pound on the release.
Current Level: 2.2036
Resistance: 2.2380
Support: 2.1900
Last Weeks Range: 2.1832- 2.2176