With the ECB hiking rates last week from 4.25% to 4.50% this has given the Euro (EUR) new interest as it moves off the low of 1.7950 (0.5570) Friday to 1.8075 (0.5530) into Tuesday trading. We still need to see the pair retest the bottom of the channel at 0.5500 (1.8170) before a signal to further downside arises. Late in the week we have Eurozone manufacturing publishing but before this NZ GDP q/q. With 0.4% expected this should bring NZ out of a technical recession. The 50 day Moving average suggests a downside bias for the kiwi over the week.
Current Level: 0.5535
Support: 0.5150
Resistance: 0.5650
Last week’s range: 0.5479 – 0.5573