The New Zealand Dollar (NZD), British Pound (GBP) has consolidated around the 0.5170 (1.9350) area over the past few days with pressure on the Pound evident. This week’s fiscal plan docket will be announced Thursday by Chancellor Jeremy Hunt which will unveil a slew of tax increases and budget cuts. Making this difficult is a widening gap of consumer cost of living and recession issues as the economy worsens. We think with the recent RBNZ rhetoric and inflation pressures the kiwi may retest the 0.5265 (1.9000) region this week.
Current Level: 0.5178 (1.9312)
Resistance: 0.5235 (1.9500)
Support: 0.5130 (1.9100)
Last Weeks Range: 0.5123-0.5226 (1.9134-1.9517)