Risk off flow in currency markets has seen the New Zealand Dollar (NZD) struggle in recent weeks against the Euro (EUR) the pair reaching 0.6100 (1.6400) yesterday a nine-week high. NZ Housing prices are starting to cool with lending slowing for the 8th consecutive month. The trend is expected to extend well into 2022 and 2023 with momentum shifting across the country. This has resulted in rate hike rise expectations cooling off. The key standout on the economic calendar this week is NZ employment data with the unemployment rate predicted to fall to 3.1%, a record low since records began in 1986. Technically on the chart we see resistance at 0.6060 (1.6500) the 50% retracement of the long-term ranges. A retest of this area is certainly possible as correlated assets suffer.
Current Level: 0.6135 (1.6300)
Resistance: 0.6210 (1.6540)
Support: 0.6045 (1.6100)
Last Weeks Range: 0.6113-0.6220 (1.6076-1.6357)