NZD

The ECB left rates unchanged and speculation is rife that interest rate cuts will begin in Q2, thus adding downward pressure to the Euro Dollar. This coming week is full of European GDP/growth and CPI/inflation across the European nations. If inflation resumes the downward direction of 2023 and growth continues to be recessionary (even contraction), then interest rates will be cut and the EUR will decline. The opposite is obviously true if GDP growth ticks upwards and inflation remains
resurgent.

Current Level: 0.5635
Support: 0.5600
Resistance: 0.5700
Last week’s range: 0.5600 – 0.5640

The NZD/GBP has fallen so far this year to trade around 0.4800, undermined by the weaker KIWI and stronger inflationary pressures in the UK. Recent CPI inflation readings in the UK have indicated a reversal of recent falls, spiking due to supply constraints and pricing pressures from the Middle East war, Red Sea and Russian sanctions. The Bank of England meet this week and are expected to leave rates unchanged, but they may decide to recognise the inflation spike and leave rates higher for longer, thus supporting the GBP.

Current Level: 2.0833
Resistance: 2.0618
Support: 2.0964
Last Weeks Range: 2.0610- 2.0820

The NZD/GBP has fallen so far this year to trade around 0.4800, undermined by the weaker KIWI and stronger inflationary pressures in the UK. Recent CPI inflation readings in the UK have indicated a reversal of recent falls, spiking due to supply constraints and pricing pressures from the Middle East war, Red Sea and Russian sanctions. The Bank of England meet this week and are expected to leave rates unchanged, but they may decide to recognise the inflation spike and leave rates higher for longer, thus supporting the GBP.

Current Level: 0.4800
Resistance: 0.4850
Support: 0.4770
Last Weeks Range: 0.4770 – 0.4805

The NZD/AUD has traded in a tight trading range over the last month, between 0.9200 and 0.9350. This may change in the coming week with the release of Australian inflation data. If the data shows signs of softening, as did last weeks NZ data, then the cross rate is likely to remain steady. If Australian inflation remains stubbornly high and the RBA is forced to hold interest rates ‘higher for longer’, then their could be some downside moves.

Current Level: 1.0730
Resistance: 1.0850
Support: 1.0700
Last Weeks Range: 1.0730 – 1.0800

The NZD/AUD has traded in a tight trading range over the last month, between 0.9200 and 0.9350. This may change in the coming week with the release of Australian inflation data. If the data shows signs of softening, as did last weeks NZ data, then the cross rate is likely to remain steady. If Australian inflation remains stubbornly high and the RBA is forced to hold interest rates ‘higher for longer’, then their could be some downside moves.

Current Level: 0.9240
Resistance: 0.9320
Support: 0.9200
Last Weeks Range: 0.9250 – 0.9330

NZ CPI inflation data confirmed inflation was falling and that rates are likely to soften this coming year, adding downside pressure to the NZD. This coming week though, will be all about speculation over the FOMC meeting and what the reserve currency will do. The Fed are likely to leave rates unchanged but a hawkish narrative may drive the USD higher, adding downward pressure to the KIWI.

Current level: 0.6110
Support: 0.6080
Resistance: 0.6200
Last week’s range: 0.6075-0.6135

The European economy is suffering recessionary economic conditions and a good indication of the future will be the measures of CPI/inflation and GDP/growth, in the coming week. Recent spikes in inflation, if confirmed by CPI data this coming week, will encourage the ECB to hold rates and extend the tight monetary conditions. Negative growth will only add pressure to the ECB to cut rates, so the data this coming week is of major significance.

Current Level: 1.6461
Resistance: 1.6595
Support: 1.6390
Last Weeks Range: 1.6433 – 1.6570

The European economy is suffering recessionary economic conditions and a good indication of the future will be the measures of CPI/inflation and GDP/growth, in the coming week. Recent spikes in inflation, if confirmed by CPI data this coming week, will encourage the ECB to hold rates and extend the tight monetary conditions. Negative growth will only add pressure to the ECB to cut rates, so the data this coming week is of major significance.

Current Level: 0.6075
Resistance: 0.6095
Support: 0.6025
Last Weeks Range: 0.6034 – 0.6085

Last week’s resurgence in inflation in the UK was confirmed by the rising CPI. This coming week the Bank of England will consider this and probably extend the ‘higher for longer’ interest rate settings. This will support the stronger GBP, with any dovish sentiment from the Fed, only adding to the Cables strength.

Current Level: 1.9290
Resistance: 1.9385
Support: 1.9190
Last Weeks Range: 1.9214 – 1.9358

European economies are suffering recessionary economic conditions, as confirmed by the flash PMI data released this week. Final PMI data will probably confirm this, in the coming week, while the market focus will turn to European growth and inflation. EU and member states inflation and GDP growth rates are set to be released, this coming week, and this will determine how the ECB will plan monetary policy. If inflation is confirmed as resurgent then rates will remain higher for longer. Alternatively, if GDP growth rates remain dire, the ECB may be encouraged to stimulate the European economy with rate cuts.

Current Level: 1.7758
Resistance: 1.7955
Support: 1.7670
Last Weeks Range: 1.7695 – 1.7930