Price in the New Zealand Dollar (NZD), Australian Dollar (AUD) pair reversed off 0.9160 (1.0920) support Monday on its way to 0.9235 (1.0830). The area around 0.9160 represents 61.8%, major “fib” support from the recent low at 0.9050 (1.1050) and the high at 0.9320 (1.0730) highlighting subsequent moves higher. As I write we are back towards 0.9210 (1.0860) area with further moves predicted towards 0.9260 (1.0800) over the coming hours/days. Aussie CPI q/q ending June should print at 1.1% down from the first quarter result of 1.4% and more importantly the 3y/y figure should drop to around 5.5% from 7.0%. Anything higher than 5.5% may give the RBA cause for concern and increase flow back into the AUD.
Current Level: 0.9196 (1.0864)
Resistance: 0.9320 (1.1043)
Support: 0.9055 (1.0727)
Last Weeks Range: 0.9162-0.9325 (1.0732-1.0914)