Bank of England’s Mann recently ruled out gradually reducing monetary policy, the British Pound (GBP) enjoying moves to the topside with price Monday clearing the key 0.4880 (2.0500) level a fresh yearly low for the AUD. It’s a thin week of data for the cross with just UK GDP m/m predicted to show 0.1% growth in January. We expect the AUD/GBP to retest the March 2020 low at 0.4800 (2.0850).
Current Level: 2.0521
Resistance: 2.1700
Support: 1.9700
Last Weeks Range: 2.0179 – 2.0514
Bank of England’s Mann recently ruled out gradually reducing monetary policy, the British Pound (GBP) enjoying moves to the topside with price Monday clearing the key 0.4880 (2.0500) level a fresh yearly low for the AUD. It’s a thin week of data for the cross with just UK GDP m/m predicted to show 0.1% growth in January. We expect the AUD/GBP to retest the March 2020 low at 0.4800 (2.0850).
Current Level: 0.4873
Support: 0.4610
Resistance: 0.5070
Last week’s range: 0.4868- 0.4955
The Euro (EUR) has gone through the roof in recent weeks, this morning price action sits around the 0.5265 (1.9000) area after coming from 0.5500 (1.8170) just 2 weeks prior. Germany’s incredible defence and infrastructure spending plans in the hope of breaking a deep recession have certainly improved the currency. A conservative country usually, they may commit 1T in efforts to fire up the economy and rebuild their military capacity. We think the EUR has been overbought and we could see the start of a significant reversal in the coming days.
Current Level: 1.9047
Resistance: 1.9560
Support: 1.8650
Last Weeks Range: 1.8547 – 1.9051
The Euro (EUR) has gone through the roof in recent weeks, this morning price action sits around the 0.5265 (1.9000) area after coming from 0.5500 (1.8170) just 2 weeks prior. Germany’s incredible defence and infrastructure spending plans in the hope of breaking a deep recession have certainly improved the currency. A conservative country usually, they may commit 1T in efforts to fire up the economy and rebuild their military capacity. We think the EUR has been overbought and we could see the start of a significant reversal in the coming days.
Current Level: 0.5250
Support: 0.5110
Resistance: 0.5360
Last week’s range: 0.5249- 0.5391
The English Pound (GBP) rise to a fresh 2025 high against the New Zealand Dollar (NZD) overnight clocking 2.2600 (0.4425), also a December 2015 high. Heavy “risk off” sentiment overnight with uncertainty around the US economy and Trump Tariffs sent US Indices plunging taking the NZD with it. With the Bank of England (BoE) cutting rates to 4.5% and inflation accelerating sharply of late it will be captivating to see just how the BoE achieve their target of 2.0% inflation.
Current Level: 2.2634
Resistance: 2.2860
Support: 2.2360
Last Weeks Range: 2.2408- 2.2690
The English Pound (GBP) rise to a fresh 2025 high against the New Zealand Dollar (NZD) overnight clocking 2.2600 (0.4425), also a December 2015 high. Heavy “risk off” sentiment overnight with uncertainty around the US economy and Trump Tariffs sent US Indices plunging taking the NZD with it. With the Bank of England (BoE) cutting rates to 4.5% and inflation accelerating sharply of late it will be captivating to see just how the BoE achieve their target of 2.0% inflation.
Current Level: 0.4418
Resistance: 0.4475
Support: 0.4375
Last Weeks Range: 0.4407- 0.4462
The New Zealand Dollar (NZD) extended moves higher Monday against the Australian Dollar (AUD) to 0.9090 (1.1000) the 3rd week straight from 0.8950 (1.1170) the kiwi has outperformed. NZ Manufacturing climbed from -1.2% in the 3rd quarter to 1.1% in the 4th quarter helping to improve the NZD. Technically we need to see a break above 0.9090 (1.1000) before further upside is possible. With no economic data due this week we suspect further range bound trading will be the theme.
Current Level: 1.1020
Resistance: 1.1100
Support: 1.1000
Last Weeks Range: 1.0975 – 1.1105
The New Zealand Dollar (NZD) extended moves higher Monday against the Australian Dollar (AUD) to 0.9090 (1.1000) the 3rd week straight from 0.8950 (1.1170) the kiwi has outperformed. NZ Manufacturing climbed from -1.2% in the 3rd quarter to 1.1% in the 4th quarter helping to improve the NZD. Technically we need to see a break above 0.9090 (1.1000) before further upside is possible. With no economic data due this week we suspect further range bound trading will be the theme.
Current Level: 0.9063
Resistance: 0.9090
Support: 0.9010
Last Weeks Range: 0.9004 – 0.9111
US Non-Farm Payroll came in light Friday sending the New Zealand Dollar (NZD) lower to 0.5700 against the US Dollar (USD). Monday’s action saw the kiwi claw back loses to 0.5740 but was unable to hold this area as US equities markets plummeted. The Nasdaq is down 3.65% this morning as uncertainty around the US economic outlook starts to filter into price action. Fed’s Powell remarked Friday that the central bank sees no urgent need to change policy, this may all be about to change with the aimless on- again- off- again tariff policy. All eyes will be on US CPI Thursday morning.
Current Level: 0.5691
Support: 0.5570
Resistance: 0.5760
Last week’s range: 0.5575 – 0.5758
Broad based outgoing flows in the US Dollar (USD) and some better-than-expected Australian data has led to the cross going on a bull run this week reaching 0.6360 early Friday before falling back to 0.6330 as I write. Better than expected Australian building permits and solid GDP 0.6% for the 4th quarter with a decent bout of “risk on” turned the Aussie off 0.6180 earlier in the week. US Jobs data printed down on expectations while a flat Non-Farm Payroll release tonight could underpin the AUD further.
Current Level: 0.6333
Resistance: 0.6400
Support: 0.6200
Last Weeks Range: 0.6186- 0.6362