The New Zealand Dollar (NZD) clawed back valuable losses mid last week from 0.5530 (1.8080) to close the week at the 0.5585 (1.7900) level. Thin markets Monday made for a volatile start to the week’s trading, the kiwi bid into Tuesday at 0.5590 (1.7890). A shifty ECB have changed their mind on rate cuts from a month ago with markets now expecting a cut to 3.40% from 3.60% early Friday. There is argument that the ECB shouldn’t cut again this week based on falls in energy prices falsely having a knock-on effect to prices, also of note wage growth has slowed despite the ECB saying it hasn’t. The kiwi could pick up a few points this week.
Current Level: 0.5581
Support: 0.5525
Resistance: 0.5650
Last week’s range: 0.5531- 0.5627