The New Zealand Dollar (NZD), Euro (EUR) trades around the 0.5570 (1.7950) area this morning after the EUR rebounded off a 7-week high at 0.5640 (1.7740) late last week. Tomorrow’s RBNZ policy meeting tomorrow should keep the kiwi offered and under pressure with a 50-point cut predicted. The OIS market is pricing in a 50-point cut in December by the ECB taking the cash rate to under 3.0% with the ECB cautious around energy prices and domestic inflationary pressures. The bear channel in the cross looks fairly robust with the setup favouring a push towards 0.5555 (1.8000) over the coming days.
Current Level: 0.5566
Support: 0.5495
Resistance: 0.5610
Last week’s range: 0.5533- 0.5635