JPY

The New Zealand Dollar (NZD) broke the 2-week range trend posting 0.9060 (1.1035) Thursday against the Australian Dollar (AUD) but wasn’t able to hold this area with the AUD reversing losses to push back Friday to 1.1105 (0.9005). We get the feeling the cross should be well into the 89’s with recent weakness but since the AUD has also struggled this week we haven’t seen big swings. Australian Iron Ore prices and weakness in the Chinese economy have been a contributor to recent Aussie weakness. The RBA remains reluctant to move interest rates due to stubborn inflation which could appreciate the AUD in the next while.

The current interbank midrate is: NZDAUD 0.8990 AUDNZD 1.1112

The interbank range this week has been: NZDAUD 0.8980- 0.9062 AUDNZD 1.1034- 1.1135

The British Pound (GBP) climbed to 2.1825 (0.4580) against the New Zealand Dollar (NZD) in morning signalling the pair will close at its highest weekly level since February 2016. UK PMI’s came in solid in contrast to weakening eurozone data leading to the Pound outperforming the kiwi. Next week’s economic docket has the Bank of England (BoE) monetary policy where the BoE will look to cut rates to 5.0% from 5.25%. Most of this will be priced into the NZD/GBP but we should certainly get a reversal higher from the NZD.

The current interbank midrate is: NZDGBP 0.4579 GBPNZD 0.6859

The interbank range this week has been: NZDGBP 0.4574- 0.4666 GBPNZD 2.1428- 2.1861

We have witnessed a massive Euro (EUR) correction over the past 2 weeks with the currency reversing off 0.6230 (1.6050) to trade back at 0.6100 (1.6400) this morning. Risk flow has been a big catalyst, along with poor Chinese data of late contributing a sizeable portion of the Aussie downturn which could continue. German and French Manufacturing prints tonight and should highlight a weakening sector.

Current Level: 1.6412
Resistance: 1.6470
Support: 1.6300
Last Weeks Range: 1.6051- 1.6282

We have witnessed a massive Euro (EUR) correction over the past 2 weeks with the currency reversing off 0.6230 (1.6050) to trade back at 0.6100 (1.6400) this morning. Risk flow has been a big catalyst, along with poor Chinese data of late contributing a sizeable portion of the Aussie downturn which could continue. German and French Manufacturing prints tonight and should highlight a weakening sector.

Current Level: 0.6093
Resistance: 0.6135
Support: 0.6070
Last Weeks Range: 0.6141- 0.6230

The Australian Dollar (AUD) has been sold off hard on the weekly open against the British Pound (GBP) extending last week’s declines to reach a fresh 3 month low of 0.5140 (1.9460) this morning. UK Retail Sales came in poor at -1.2% for the month of June after solid growth in May of 2.9% as households become cautious. The data had minimal effect on the cross as markets have been “risk averse” on the fallout of Biden exiting from the presidential race. UK Manufacturing prints later today, expected to come in decent and give the Pound a further boost.

Current Level: 1.9489
Resistance: 1.9400
Support: 1.9350
Last Weeks Range: 1.9121- 1.9358

The New Zealand Dollar (NZD) continues to fall against the Euro (EUR) pushing past long-term support Monday at 0.5520 (1.8120) the kiwi has clocked 0.5500 (1.8215) this morning a fresh 2024 low. The European Union (ECB) left their key interest rate unchanged at 4.25% last week in a dovish decision however the hot German producer prices have helped boost the EUR. We could see further declines in the NZD to chart support at 0.5450 (1.8350) the 2020 covid low.

Current Level: 1.8228
Resistance: 1.8350
Support: 1.8050
Last Weeks Range: 1.7804 – 1.8108

The New Zealand Dollar (NZD) continues to fall against the Euro (EUR) pushing past long-term support Monday at 0.5520 (1.8120) the kiwi has clocked 0.5500 (1.8215) this morning a fresh 2024 low. The European Union (ECB) left their key interest rate unchanged at 4.25% last week in a dovish decision however the hot German producer prices have helped boost the EUR. We could see further declines in the NZD to chart support at 0.5450 (1.8350) the 2020 covid low.

Current Level: 0.5486
Support: 0.5540
Resistance: 0.5450
Last week’s range: 0.5222- 0.5616

The New Zealand Dollar (NZD) is struggling to gain any momentum against the British Pound (GBP) post last week’s NZ CPI release. The kiwi has clocked further losses reaching 0.4625 (2.1620) in early Tuesday clearing the support and level at 0.4630 (2.1590) – the low from May 2016. This date signifying the massive shift in the cross-post Brexit voting. No data this week in the pair should indicate any moves will be based on big picture themes.

Current Level: 2.1640
Resistance: 2.2000
Support: 2.1212
Last Weeks Range: 2.1197- 2.1491

The New Zealand Dollar (NZD) is struggling to gain any momentum against the British Pound (GBP) post last week’s NZ CPI release. The kiwi has clocked further losses reaching 0.4625 (2.1620) in early Tuesday clearing the support and level at 0.4630 (2.1590) – the low from May 2016. This date signifying the massive shift in the cross-post Brexit voting. No data this week in the pair should indicate any moves will be based on big picture themes.

Current Level: 0.4621
Resistance: 0.4715
Support: 0.4545
Last Weeks Range: 0.4653- 0.4717

For about a week now the Australian Dollar (AUD), New Zealand Dollar (NZD) cross has been pivoting around the 0.9000 (1.1100) zone in the wake of Mixed Aussie jobs data and falling NZ CPI. As we mentioned it’s becoming tough to get a read on the NZD/AUD and directions from here, certainly with the RBA considering hikes on August 6th we may see the cross trend much lower into the 89’s with pressure remaining to the downside. We see no tier one date on the economic docket this week suggesting we could see more of the same.

Current Level: 1.1101
Resistance: 1.1150
Support: 1.1030
Last Weeks Range: 1.1053 – 1.1151