For 6 weeks straight the New Zealand Dollar (NZD) has had the better of the Euro (EUR) coming from 0.5585 (1.7900) levels to 0.5735 (1.7440) yesterday. Monday’s action has seen the kiwi give back a chunk of these gains to 0.5690 (1.7570) as ECB rate cuts exit the table. The NZD still needs to make a break below 0.5680 (1.7600) to clear the bear channel and signal a trend change to the downside. Tomorrow’s RBNZ policy meeting has most of us suggesting the central bank won’t hike interest rates past 5.50% but the rhetoric around future plans could move the cross.
Current Level: 0.5685
Support: 0.5650
Resistance: 0.5740
Last week’s range: 0.5682- 0.5734