The New Zealand Dollar (NZD) looked steady Monday trading around the weekly open at 0.4775 (2.0940) against the British Pound (GBP), will the kiwi extend higher for the 5th straight week is the question. If it can get past 0.4800 (2.0850) resistance it has every chance. We have a full week of data announcements in the cross starting with UK CPI Thursday followed by NZ GDP then BoE cash rate release before UK Retail Sales and Manufacturing. NZ GDP is predicted to show 0.4% for the second quarter bringing NZ formally out of a recession, meanwhile UK CPI is predicted to print around 7.0% y/y in August from 6.8% as the Bank of England hike rates from 5.25% to 5.5% in order to stop runaway inflation. We don’t imagine too much upside this week for the NZD BoE, speak will be key.
Current Level: 2.0933
Resistance: 2.1600
Support: 2.0700
Last Weeks Range: 2.0930 – 2.1210