The New Zealand Dollar (NZD) remains under pressure against the British Pound (GBP) falling to a long-term low of 0.4715 (2.1220), not seen since March 2020. The GBP outperformed late in the week on better-than-expected economic data- GDP for June came in at 0.5% vs 0.2% showing the economy is growing faster than predicted. This week we have the RBNZ rate announcement which is widely predicted to stay on hold at 5.5% for now through to mid-2024. Later in the week UK CPI y/y prints with expectations inflation should drop to around 6.7%. This in turn is key to determining how much the Bank of England (BoE) will hike at its meeting on September 21st. It’s hard to see the kiwi bouncing back any time soon.
Current Level: 0.4705
Resistance: 0.4785
Support: 0.4670
Last Weeks Range: 0.4710 – 0.4798