The New Zealand Dollar (NZD) extended gains against the Euro (EUR) to 0.6165 (1.6220) late last week posting a fresh 11 week high. Weak PMI reads with Eurozone and German composite PMIs contracted in June the worst report in over two years. Declines in domestic and export demand indicated an uncertain business environment based on supply shortages and expectations the economy will worsen over the coming months. The war in Ukraine will continue to impact for some time, disruptions to gas supply into Europe isn’t helping. Today we are buying EUR over the 0.6100 area representing solid interest around these levels. The mid-June rally in equity markets has been helping, although at current levels these look very toppy suggesting a new trend to the downside could be approaching over the next couple of weeks. Don’t leave it too late.
Current Level: 0.6119 (1.6342)
Resistance: 0.6160 (1.6730)
Support: 0.5980 (1.6230)
Last Weeks Range: 0.6043-0.6162 (1.6226-1.6546)