A quiet start to the week in the New Zealand (NZD), Euro (EUR) cross saw price drift around 0.6035 (1.6570) levels into Tuesday with a slight improvement in the EUR developing. Lagarde spoke overnight about her hiking plans and how the war in the Ukraine means the Euro economic area is still under mass uncertainty . She made her intentions clear to hike rates in July and September. The new anti-fragmentation tool should assist in allowing them to hike rates with the ultimate goal of bringing down inflation back to their 2.0% target. We predict the kiwi to struggle over the next few days driven by risk sentiment. On the calendar this week we have Eurozone production output and German producer prices.
Current Level: 0.6015 (1.6625)
Resistance: 0.6105 (1.6850)
Support: 0.5935 (1.6380)
Last Weeks Range: 0.5934-0.6060 (1.6501-1.6851)