FX News


The New Zealand Dollar (NZD) looked good early in the week climbing to 0.5795 (1.7260) against the Euro (EUR) but has since given back gains. The Euro helped recently by German CPI which came in above forecast at 7.4% y/y but down from 8.7%. The ECB are focusing on big picture views and remain staunch on achieving their 2.0% inflation target. Eurozone bank deposits are still healthy following the recent closures of US banks, ECB’s Schnabel saying confidence in the banking sector is solid. The news was also positive for the Euro. This afternoon’s RBNZ cash rate increase to 5.25% from 4.75% surprised markets moving the pair to 0.5825 (1.7170) post release with the RBNZ clearly overly panicked by high inflation. We would need to see a price shift through 0.5920 (1.6900) to indicate a trend reverse.

Current Level: 0.5789 (1.7274)
Resistance: 0.5815 (1.7500)
Support: 0.5715 (1.7200)
Last Weeks Range: 0.5717 -0.5787 (1.7280-1.7490)

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