JPY

Prices Monday in the US Dollar (USD), New Zealand Dollar (NZD) cross extended lower off the 0.6140 area to reach solid support at the 0.6100 level before reversing towards 0.6130 in early Tuesday trading. NZIER (New Zealand Institute of Economic Research) issued its quarterly forecast yesterday highlighting a downgraded view of economic outlook to come over the coming months. Growth ending Mar 2025 has been revised lower to 0.6%. GDP for the first quarter 2024 prints Thursday and is coincidentally expected to come in at 0.1%- we can’t see it. Later in the week is US Manufacturing data. Topside moves for the kiwi could be limited.

Current Level: 0.6135
Support: 0.6100
Resistance: 0.6220
Last week’s range: 0.6098- 0.6220

The New Zealand Dollar (NZD) came roaring back this week against the British Pound (GBP) from 0.4795 (2.0860) to reach 0.4850 (2.0630) regaining last week’s momentum as risk flow improved. UK labour market data came in mixed with unemployment rising to 4.4% from 4.3% the highest number since Oct 2021 while the number of paid payroll numbers declined 3,000 after 36,000 fell in April. We have a busy week of economic data next week with UK CPI y/y, Bank of England Cash Rate and NZ GDP to digest. Resistance on the chart in the pair is 0.4855 (2.0600) the 28 Feb high- a break past here would suggest further upside for the kiwi.

The current interbank midrate is: NZDGBP 0.4821 GBPNZD 2.0742

The interbank range this week has been: NZDGBP 0.4794- 0.4846 GBPNZD 2.0632- 2.0858

Risk on flow this week overall has supported the New Zealand Dollar (NZD) rising across the board, to 0.6220 against the US Dollar (USD). US CPI came in soft at 3.3% compared to 3.4% predicted before the Federal Reserve meeting. The Fed kept held their benchmark interest rate at 5.50% as widely expected with the central bank now only pencilling in 1 cut this year. 15 of 19 Fed officials expect the Fed to cut just once this year compared to 6 cuts forecast in early May. Friday action has seen prices fall back to around 0.6165 stalling out on hawkish fed speak over the past day. Next week’s NZ GDP for the first quarter of 2024 should reflect a negative number as the NZ economy struggles in a recession.

The current interbank midrate is: NZDUSD 0.6147

The interbank range this week has been: NZDUSD 0.6098- 0.6221

The New Zealand Dollar (NZD), Australian Dollar (AUD) still sits in the bull trend channel this week at 0.9295 (1.0760) currently, from the low at 0.9065 (1.1030) set early May. The NZD still well supported on dips in the run up to 0.9320 however with Aussie job numbers printing better than expected we have seen more buying of the AUD over the past day or so. Any chance we had of the RBA cutting rates this year is now a pipe dream with the unemployment dipping slightly from 4.1% to 4.0% in May the Australian economy showing reliance. Next week’s RBA cash rate will remain at 4.35%- a non-event. Technically we pick the cross to retest the fib area at 0.9260 (1.0800) early next week.

The current interbank midrate is: NZDAUD 0.9280 AUDNZD 1.0771

The interbank range this week has been: NZDAUD 0.9266- 0.9318 AUDNZD 1.0731- 1.0796

The Australian Dollar (AUD) was sold down to 0.6100 (1.6400) Friday a 5-week low post US (NFP) Non-Farm Payroll releasing before recovering in Monday markets to 0.6150 (1.6260) against the Euro. Weekend European election results sank the Euro, the French President Macron calling a snap election after being defeated by the far right. On the economic docket this week in the pair is Aussie jobs numbers Thursday expected to weaken the AUD.

Current Level: 1.6315
Resistance: 1.6600
Support: 1.6210
Last Weeks Range: 1.6252- 1.6419

The Australian Dollar (AUD) was sold down to 0.6100 (1.6400) Friday a 5-week low post US (NFP) Non-Farm Payroll releasing before recovering in Monday markets to 0.6150 (1.6260) against the Euro. Weekend European election results sank the Euro, the French President Macron calling a snap election after being defeated by the far right. On the economic docket this week in the pair is Aussie jobs numbers Thursday expected to weaken the AUD.

Current Level: 0.6129
Resistance: 0.6170
Support: 0.6020
Last Weeks Range: 0.6090- 0.6153

The Australian Dollar (AUD) got hammered Friday dropping to 0.5170 (1.9340) at the weekly close against the British Pound (GBP) off the back of Fed job’s numbers and ‘big” dollar remand. The bear run remains our focus technically from the mid-May high at 0.5285 (1.8920), we see the GBP well supported on dips and should remain in control for a while. On the docket this week is Aussie employment data with numbers expected to come in light.

Current Level: 1.9297
Resistance: 1.9400
Support: 1.9130
Last Weeks Range: 1.9091- 1.9328

The Euro (EUR) rallied Friday coming off 0.5695 (1.7560) area to reach 0.5650 (1.7700) against the New Zealand Dollar (NZD). The kiwi contending with an intense session Friday after US job numbers boosted the US Dollar as investors sold “risk”. However, the Euro gave it all back Monday reacting to the weekend European Parliamentary election result. The NZD/EUR is inching closer to the yearly open price at 0.5730 (1.7450), we expect the NZD bull run to continue over June.

Current Level: 1.7574
Resistance: 1.7790
Support: 1.7450
Last Weeks Range: 1.7524 – 1.7698

The Euro (EUR) rallied Friday coming off 0.5695 (1.7560) area to reach 0.5650 (1.7700) against the New Zealand Dollar (NZD). The kiwi contending with an intense session Friday after US job numbers boosted the US Dollar as investors sold “risk”. However, the Euro gave it all back Monday reacting to the weekend European Parliamentary election result. The NZD/EUR is inching closer to the yearly open price at 0.5730 (1.7450), we expect the NZD bull run to continue over June.

Current Level: 0.5690
Support: 0.5620
Resistance: 0.5730
Last week’s range: 0.5650- 0.5706

The New Zealand Dollar (NZD) retreated from the 0.4855 (2.0600) level Friday falling to 0.4800 (2.0845 at the close of the week reversing a large part of a 5 week climb from around 0.4785 (2.0900). Risk currencies all got sold off the back of a surprising upswing in US job’s data. Into Tuesday prices in the pair sit around the weekly open at 0.9285 (1.0770). We await UK GDP tomorrow, the UK economy is predicted to grow 0.0% in April after 0.4% in March suggesting that although the country is out of recession they are running close to the wire. Risk remain to the upside for the kiwi.

Current Level: 2.0785
Resistance: 2.0900
Support: 2.0600
Last Weeks Range: 2.0605- 2.0845