It’s been all one-way traffic in the New Zealand Dollar (NZD), Euro (EUR) cross this week extending off 1.7800 (0.5620) the weekly open to 1.8070 (0.5535) in morning trade the kiwi coming under enormous pressures after the RBNZ cut interest rates half a cent yesterday off 5.25% to 4.75%. The cut was widely predicted however although much of the downside momentum in the NZD was priced in, more sellers of NZD come forward post the release. On the chart the kiwi has slipped past prior support at 0.5555 (1.80) and could retest early July levels circa 0.5510 (1.8150) in the coming days. We haven’t seen much on the Euro calendar this week, much of the focus has been on the German govt updating their GDP forecast which is predicted to be a negative number when it prints at the end of this month.
Current Level: 0.5542
Support: 0.5520
Resistance: 0.5660
Last week’s range: 0.5606- 0.5720