The risk off tone continues to weigh down markets Monday with the British Pound (GBP) reaching 1.9555 (0.5115) against the New Zealand Dollar (NZD) as equity markets slipped further into the red. Thin markets with the UK bank holiday made for choppy conditions, the kiwi pulling back early week losses to 0.5145 (1.9440) early Tuesday. NZ Unemployment is forecast to click lower to 3.1% tomorrow when it publishes which could give the NZD a kick. Following this Thursday is the Bank of England (BoE) monetary policy and official cash rate. A rise in the OCR is expected to take the rate to 1.0% in efforts to try and combat rising inflation but with the Ukraine war in focus the central bank may come out rather cautious. We expect further downside for the kiwi this week.
Current Level: 0.5161 (1.9376)
Resistance: 0.5230 (1.9650)
Support: 0.5090 (1.9130)
Last Weeks Range: 0.5129-0.5241 (1.9077-1.9494)