After a quiet start to the week hovering around .6140 the NZDEUR, along with all the major currency pairs, reacted on Wednesday night to the USD inflation data missing market expectations and falling to 8.5%. This sent the reserve plummeting and gave commodity currencies a boost. The NZDEUR subsequently jumped to .6227 as the EUR lagged due to the ongoing energy crisis and their own inflationary problems casting a shadow of doubt over the EU. German CPI data came in at 7.5% on the same night – in line with expectations but hardly anything to brag about. Following Wednesday night’s market action, the NZDEUR settled around .6210 and we will await next week’s EU zone GDP and core inflation data due on the 17th and 18th of August respectively. The declining strength in the EUR and ongoing energy problems heading into winter suggests this pair could see more volatility in the months ahead.
Current Level: 0.6228
Resistance: 0.6240/0.6290
Support: 0.6070/0.6110
Last Weeks Range: 0.6115-0.6241