Yesterday’s NZ inflation expectations release put the New Zealand Dollar (NZD) under pressure against the Euro (EUR) the cross falling to 0.5570 (1.7945) off 0.5595 (1.7880). The 2-year inflation forecast decreased from 2.5% to 2.33% with the 1 year decreasing to 2.73% down from 3.22%. Earlier Lagarde confirmed a rate cut by the European Central Union will happen in the June meeting easing its monetary policy from 4.35%. We expect a slow burn in the cross back to 0.5650 (1.7700) resistance over the next while.
Current Level: 0.5572
Support: 0.5520
Resistance: 0.5610
Last week’s range: 0.5566- 0.5601