Price in the Euro (EUR), New Zealand Dollar (NZD) cleared solid support Monday at 0.5555 (1.8000) to reach a fresh low of 0.5535 (1.8070) matching an August 2020 level. An underperforming EUR post a slew of eurozone manufacturing and services industry reads sent the Aussie higher retracing a chunk of last week’s declines. Manufacturing in the region looks asleep at the wheel, the worst result in months. Indicators point to slowing weakness in the second and third quarters. All eyes will be on the ECB cash rate release Thursday night NZT with an expected hike of 25 points to 4.25% with rhetoric suggesting a halt to the tightening cycle although a hawkish approach is predicted based on stubbornly high inflation.
Current Level: 0.5595 (1.7873)
Resistance: 0.5700 (1.8050)
Support: 0.5540 (1.7545)
Last Weeks Range: 0.5541-0.5678 (1.7612-1.8047)