The New Zealand Dollar (NZD) extended its recent run higher against the British Pound (GBP) in a big way Monday coming off a weekly close at 0.5180 (1.9300) levels to post 0.5255 (1.9035) late in the day. While risk sentiment has been terrible the Russian/Ukraine war has put significant downward pressure on the Pound, the kiwi reaching a 2022 high. Russian aggression may continue to benefit the kiwi for a while yet. Overnight prices reversed to 0.5200 (1.9220) as punters analysed the potential fallout of energy sanctions. Although the risk sensitive NZD has the potential to trade much lower, most of the action to date since the war began has been about the downside risks to Europe and UK trade impacts. Where to from here is anyone’s guess literally, but with surging inflation risks and supply chain woes worsening the RBNZ will carry on hiking which could underpin the kiwi over the following months.
Current Level: 0.5217 (1.9168)
Resistance: 0.5285 (1.9270)
Support: 0.5190 (1.8920)
Last Weeks Range: 0.5002-0.5194 (1.9252-1.9992)