currency exchange

The UK economy has been showing signs of life, since the new Labour Government has assumed power, but much of this is unfolding historical data from the previous Governments economic settings. The UK has slammed the economy with a ‘tax and spend’ budget, which is starting to bear fruit, with GDP numbers contracting, once again. The green-shoots have been nipped in the bud. UK CPI will be released this coming week and if this rises, then the spending portion of the budget, will have unleashed inflation once again. The cross rate with the NZD Dollar has been steady, as falls have been similar in size.

The current interbank midrate is: NZDGBP .4650 GBPNZD 2.1505

The interbank range this week has been: NZDGBP .4595-.4650 GBPNZD

European markets have been attempting to stimulate their way out of recession through loose monetary policy, but growth remains challenging and inflation has reversed recent trend lines lower. The fear of high energy costs, from an escalating war in Europe, only adds to the gloomy economic outlook. The cross rate with the AUD is relatively steady, as all boats sink on a falling tide.

The current interbank midrate is: AUDEUR .6150 EURAUD 1.6260

The interbank range this week has been: AUDEUR .6100 – .6150 EURAUD

The NZD has suffered enormously, post the US Presidential election and the resounding win by Trump. Market confidence has soared and along with it, US equities and the US Dollar. The NZD has plummeted all the way down to 0.5850, following the surge in the reserve currency. The precipitous losses were calmed last week, when Fed Chairman Powell acknowledged there was ‘no hurry’ to cut rates, with Trump pro-growth economic policies.

The current interbank midrate is: NZDUSD .5900

The interbank range this week has been: NZDUSD .5830-.5900

The NZD/AUD cross rate has been moving steadily lower, approaching the key 0.9000 mark. The RBNZ has embarked on a rate cutting program and this is in direct contrast to the RBA Governor, who holds rates higher. The RBA Governor has cited stubborn inflationary pressures remaining in the Australian economy, none less than in fiscal spending. The pressure remains to the downside.

The current interbank midrate is: NZDAUD .9050 AUDNZD 1.1040

The interbank range this week has been: NZDAUD .9000 – .9070 AUDNZD 1.0950 – 1.1050

After weakening off to 0.6135 (1.6300)  levels late last week the Australian Dollar (AUD) has clawed back losses Monday to trade back at 0.6170 (1.6200) against the Euro (EUR) off the back of a collapse in the German coalition Government. Australian jobs numbers release Thursday and should reflect a shift in recent strong “employed” jobs numbers. Until late labour force participation has remained high at 67.2%, this has been creating wage and inflation pressures. This could all be about to change?. We pick a reversal on the cards back to 0.6060 (1.6500) levels.

Current Level: 1.6217
Resistance: 1.6530
Support: 1.6000
Last Weeks Range: 1.6160- 1.6542

After weakening off to 0.6135 (1.6300)  levels late last week the Australian Dollar (AUD) has clawed back losses Monday to trade back at 0.6170 (1.6200) against the Euro (EUR) off the back of a collapse in the German coalition Government. Australian jobs numbers release Thursday and should reflect a shift in recent strong “employed” jobs numbers. Until late labour force participation has remained high at 67.2%, this has been creating wage and inflation pressures. This could all be about to change?. We pick a reversal on the cards back to 0.6060 (1.6500) levels.

Current Level: 0.6166
Resistance: 0.6250
Support: 0.6050
Last Weeks Range: 0.6045- 0.6188

The Bank of England (BoE) cut their interest rate Friday from 5.00% to 4.75% as widely expected. The vote, an 8-1 decision was accompanied by benign policy guidance with a gradual approach to slowly removing restraints. The recent budget reinforcing a boost to growth and inflation. The British Pound (GBP) pushed higher over the news to0 0.5090 (1.9650). Heading into Tuesday the AUD has recovered slightly to 0.5110 (1.9570) as we await Australian Jobs data this week.

Current Level: 1.9580
Resistance: 1.9700
Support: 1.9330
Last Weeks Range: 1.9426- 1.9781