The New Zealand Dollar (NZD), Australian Dollar (AUD) is still holding firm around the 0.9260 (1.0787) zone heading into Tuesday with little reason to break out of this zone. NZ Retail Sales was down on expectations at 0.4% from 0.5% q/q weakening the kiwi slightly, overall, the cross seeks directional cues. The kiwi has done well post last week’s cash rate increase to 4.25% but we suspect the AUD may improve this week as the iron ore price continues to advance. Both central bank governors speak this week, the only standouts on the calendar.
Current Level: 0.9265 (1.0790)
Resistance: 0.9345 (1.0900)
Support: 0.9175 (1.0700)
Last Weeks Range: 0.9215-0.9337 (1.0710-1.0851)