currency

FX News

AUD/USD Transfer

Last week’s US drop in inflation release has put the US Dollar (USD) on notice. Markets are now focusing on clues as to when the Federal Reserve might “cut” rates. Up until recently the rhetoric was “high for long”. Prices Monday in the cross extended Friday’s close around 0.6500 reaching 0.6560 this morning looking like we may see the highest daily close in the pair since 8 August earlier this year. Key Fib levels suggest the pair could get strong resistance around 0.6600 – the 50% zone of the low of 0.6300 and high at 0.6900 in July. In the meantime, RBA minutes later today should confirm further tightening of policy may be required to bring inflation under control, data dependent with evolving risks.

Current Level: 0.6560
Support: 0.6300
Resistance: 0.6800
Last week’s range: 0.6348 – 0.6542

FX News

EURO/NZD Transfer

The New Zealand Dollar (NZD) retested heavy support at 0.5480 (1.8240) late in the week against the Euro (EUR) closing at the 0.5495 (1.8200) area. Monday’s risk on flows have seen the kiwi kick back to 0.5530 (1.8080) as equity markets improved overnight and the US Dollar index declined half a percent. On the docket this week is French and German Manufacturing. A decline in Producer prices could push the kiwi higher as buyer appetite for the Euro drops. Friday’s NZ Retail Sales for September could put the NZD under pressure if we see a release of around -1.0%.

Current Level: 1.8132
Resistance: 1.8400
Support: 1.7605
Last Weeks Range: 1.7954 – 1.8283

FX News

NZD/EURO Transfer

The New Zealand Dollar (NZD) retested heavy support at 0.5480 (1.8240) late in the week against the Euro (EUR) closing at the 0.5495 (1.8200) area. Monday’s risk on flows have seen the kiwi kick back to 0.5530 (1.8080) as equity markets improved overnight and the US Dollar index declined half a percent. On the docket this week is French and German Manufacturing. A decline in Producer prices could push the kiwi higher as buyer appetite for the Euro drops. Friday’s NZ Retail Sales for September could put the NZD under pressure if we see a release of around -1.0%.

Current Level: 0.5515
Support: 0.5435
Resistance: 0.5680
Last week’s range: 0.5469 – 0.5569

FX News

GBP/NZD Transfer

The British Pound (GBP) held prices around 2.0790 (0.4810) at the end of the week against the New Zealand Dollar (NZD) despite softer UK Retail Sales. Moves into Tuesday have been largely to the upside, the kiwi clawing back losses to 0.4830 (2.0700). This week we expect the pair to keep within recent ranges on a lack of data publishing. Looking ahead we have UK Manufacturing before NZ Retail Sales Friday.

Current Level: 2.0725
Resistance: 2.1210
Support: 2.0365
Last Weeks Range: 2.0589- 2.0962

FX News

NZD/GBP Transfer

The British Pound (GBP) held prices around 2.0790 (0.4810) at the end of the week against the New Zealand Dollar (NZD) despite softer UK Retail Sales. Moves into Tuesday have been largely to the upside, the kiwi clawing back losses to 0.4830 (2.0700). This week we expect the pair to keep within recent ranges on a lack of data publishing. Looking ahead we have UK Manufacturing before NZ Retail Sales Friday.

Current Level: 0.4825
Resistance: 0.4910
Support: 0.4715
Last Weeks Range: 0.4770 – 0.4857

FX News

AUD/NZD Transfer

The Australian Dollar (AUD) made gains on the New Zealand Dollar (NZD) last week closing up around ¾ of a percent. The Aussie supported by a range of positive data- The Chinese RMB, rises in precious metals and resources prices including iron Ore rise to 134.50. Last week’s stubborn unemployment at 3.7% and recent interest hike to 4.35% are keeping the Aussie bid. Today’s RBA minutes from the 7th of Nov meeting will be keenly followed as investors look for further clues around forward guidance. 0.9180 (1.0890) has held earlier today with the kiwi looking to recover losses as I write.

Current Level: 1.0859
Resistance: 1.0950
Support: 1.0650
Last Weeks Range: 1.0772 – 1.0881

FX News

NZD/AUD Transfer

The Australian Dollar (AUD) made gains on the New Zealand Dollar (NZD) last week closing up around ¾ of a percent. The Aussie supported by a range of positive data- The Chinese RMB, rises in precious metals and resources prices including iron Ore rise to 134.50. Last week’s stubborn unemployment at 3.7% and recent interest hike to 4.35% are keeping the Aussie bid. Today’s RBA minutes from the 7th of Nov meeting will be keenly followed as investors look for further clues around forward guidance. 0.9180 (1.0890) has held earlier today with the kiwi looking to recover losses as I write.

Current Level: 0.9201
Resistance: 0.9390
Support: 0.9130
Last Weeks Range: 0.9190 – 0.9283

 

FX News

NZD/USD Transfer

The double top area at 0.6050 is coming into play with the recent spike in the New Zealand Dollar (NZD). The US Dollar (USD) has been under the pump with talk over the Federal Reserve’s next rate move, possibly a cut. Certainly, recent inflation figures are supporting this when it recently dropped from 3.7% to 3.2% y/y. We should get further clues in tomorrow morning’s Fed minutes. Recently Fed’s Powell reiterated the need for higher bond yields and the 2.0% inflation target was a long way off. A push past 0.6070 could signal further upside for the kiwi, certainly risk sentiment will play a big part in such a move with the geopolitical uncertainty still the no 1 currency mover.

Current Level: 0.6037
Resistance: 0.6200
Support: 0.5850
Last Weeks Range: 0.5862 – 0.6053

FX News

AUD/USD Transfer

US inflation data surprised markets early Wednesday, the report showing yearly inflation has fallen from 3.7% to 3.2% with energy, utility and gas prices all declining in the month of September. This news confirms the Fed will most likely be taking off the table a hike at their December policy meeting. Treasury yields plunged and the US Dollar (USD) was heavily sold off across the board. Against the Aussie price moved to just under 0.6550 from around 0.6380. Meanwhile Aussie unemployment moved higher off 3.6% to 3.7% beating out expectations of 3.6% suggesting the RBA may have work still to do. Risk sentiment remains tender with the conflicts in Gaza, we don’t expect the AUD to move up past current levels over the medium term with overall bias still to the downside.

The current interbank midrate is: AUDUSD 0.6470

The interbank range this week has been: AUDUSD 0.6352- 0.6542

FX News

AUD/GBP Transfer

The British Pound (GBP) weakened off 1.9320 (0.5175) against the Australian Dollar (AUD) after UK inflation came in lower than prediction, investors exiting the GBP en masse, the cross reaching 1.9020 (0.5260). UK inflation printed at 4.6% in October y/y coming down from 6.7% as energy prices fell and the UK economy stares at the real possibility they may fall into recession in the next few months. Meanwhile Australian unemployment rose to 3.7% from 3.6% as the number of employed jumped by 55,000 after expectations of a rise of just 22,000. The news sent the AUD lower with price retracing to 1.9220 (0.5200). We continue to expect the GBP to retest 1.9330 (0.5175) – the 3-month low.

 

The current interbank midrate is: AUDGBP 0.5210 GBPAUD 1.9193

The interbank range this week has been: AUDGBP 0.5175- 0.5250 GBPAUD 1.9047- 1.9323