The New Zealand Dollar (NZD) improved off 0.5410 (1.8490) late in the week to close around the 0.5465 (1.8300) level as risk markets came back online. Early Monday we saw the kiwi extend to 0.5480 (1.8250) however it’s been unable to maintain around this level falling to 0.5470 (1.8280). Eurozone GDP was well received coming in at 0.1% after 0.0% was forecast. ECB’s Panetta believes the ECB should be cutting 75 points over the next 12 months in line with downward pressures on inflation. Tomorrow’s RBNZ policy announcement should cut rates by 50 points potentially with a dovish statement. This could put pressure on the NZD this week.
Current Level: 0.5465
Support: 0.5400
Resistance: 0.5485
Last week’s range: 0.5407- 0.5492