The New Zealand Dollar (NZD) retested heavy support at 0.5480 (1.8240) late in the week against the Euro (EUR) closing at the 0.5495 (1.8200) area. Monday’s risk on flows have seen the kiwi kick back to 0.5530 (1.8080) as equity markets improved overnight and the US Dollar index declined half a percent. On the docket this week is French and German Manufacturing. A decline in Producer prices could push the kiwi higher as buyer appetite for the Euro drops. Friday’s NZ Retail Sales for September could put the NZD under pressure if we see a release of around -1.0%.
Current Level: 0.5515
Support: 0.5435
Resistance: 0.5680
Last week’s range: 0.5469 – 0.5569