Prices in the New Zealand Dollar (NZD), Australian Dollar (AUD) have dropped to 0.8914 (1.1220) suggesting ongoing support as we mentioned earlier for the Aussie. A retest of the long term low at 0.8890 (1.1250) looks imminent. Earlier governor Lowe said he expects to raise interest rates over the coming months but slow the pace of tightening. The full effect of interest rates has yet to flow through to higher consumer mortgage payments. Both NZ GDP q/q and Australian job’s data are expected to print well. NZ GDP for the second quarter should reflect an improving economy (1.0%) post covid lockdowns and restrictions. Sellers of AUD should consider with levels back under 0.9000 (1.1100) alluring.
Current Level: 0.8912 (1.1212)
Resistance: 0.9010 (1.1250)
Support: 0.8890 (1.1100)
Last Weeks Range: 0.8917-0.8999 (1.1113-1.1214)