NZD

US Dollar (USD) weakness continues post the US Thanksgiving holiday, risk currencies getting another boost from this. The Australian Dollar (AUD) clawed back early losses from 0.5215 (1.9180) to 0.5235 (1.9100) this morning rebounding off the 50% fib key level. Aussie CPI y/y prints tomorrow and should reflect a small drop from 5.6% to around 5.2%. The new RBA chief Michele Bullock has been hawkish of late with inflation concerns, will she keep the same line?

Current Level: 1.9109
Resistance: 1.9340
Support: 1.8940
Last Weeks Range: 1.9013 – 1.9175

The Euro (EUR) wasn’t able to hold the 1.8050 (0.5540) level Monday after a bumper start to the week, the kiwi recovering to 0.5575 (1.7940) as risk returned and the greenback weakened. The Euro extended last week’s losses post ECB comments from Muller suggesting they do not need to keep tightening policy further. ECB’s Nagel said they were not yet where they wanted to be on inflation. The key standout this week is the RBNZ rate announcement. It’s widely expected the central bank will retain the 5.5% but attention will be on further clues as to when cuts could kick in.

Current Level: 1.7962
Resistance: 1.8250
Support: 1.7600
Last Weeks Range: 1.790 – 1.8214

The Euro (EUR) wasn’t able to hold the 1.8050 (0.5540) level Monday after a bumper start to the week, the kiwi recovering to 0.5575 (1.7940) as risk returned and the greenback weakened. The Euro extended last week’s losses post ECB comments from Muller suggesting they do not need to keep tightening policy further. ECB’s Nagel said they were not yet where they wanted to be on inflation. The key standout this week is the RBNZ rate announcement. It’s widely expected the central bank will retain the 5.5% but attention will be on further clues as to when cuts could kick in.

Current Level: 0.5567
Support: 0.5480
Resistance: 0.5680
Last week’s range: 0.5490 – 0.5571

It’s been a shaky start to the week in the New Zealand Dollar (NZD), British Pound (GBP) pair pushing lower to 0.4812 (2.0780) and back to 0.4835 (2.0680) this morning. Early strength in the GBP was undone off the back a little “risk” demand. Key data this week is the RBNZ rate announcement- no change is expected from 5.5% but comments around future rate cuts could be interesting. Rhetoric around bringing forward from late next year could weaken the kiwi.

Current Level: 2.0712
Resistance: 2.0900
Support: 2.0180
Last Weeks Range: 2.0591- 2.0799

It’s been a shaky start to the week in the New Zealand Dollar (NZD), British Pound (GBP) pair pushing lower to 0.4812 (2.0780) and back to 0.4835 (2.0680) this morning. Early strength in the GBP was undone off the back a little “risk” demand. Key data this week is the RBNZ rate announcement- no change is expected from 5.5% but comments around future rate cuts could be interesting. Rhetoric around bringing forward from late next year could weaken the kiwi.

Current Level: 0.4828
Resistance: 0.4995
Support: 0.4784
Last Weeks Range: 0.4810 – 0.4857

The Australian Dollar (AUD) rallied back from 1.0800 (0.9260) levels Monday against the New Zealand Dollar (NZD) reaching 1.0850 (0.9215) late in the day before falling back towards 1.0820 (0.9240) heading into Tuesday. One would imagine a little jostling in the markets ahead of the RBNZ rate decision tomorrow could be the culprit with the central bank predicted to retain rates at 5.50%. Comments from the governor will be key around the outlook and when cuts in 2024 will happen. On the chart we are still well within recent ranges between 0.9100- 0.9300 and see no change from this over the following days.

Current Level: 1.0829
Resistance: 1.0990
Support: 1.0600
Last Weeks Range: 1.0804 – 1.0886

The Australian Dollar (AUD) rallied back from 1.0800 (0.9260) levels Monday against the New Zealand Dollar (NZD) reaching 1.0850 (0.9215) late in the day before falling back towards 1.0820 (0.9240) heading into Tuesday. One would imagine a little jostling in the markets ahead of the RBNZ rate decision tomorrow could be the culprit with the central bank predicted to retain rates at 5.50%. Comments from the governor will be key around the outlook and when cuts in 2024 will happen. On the chart we are still well within recent ranges between 0.9100- 0.9300 and see no change from this over the following days.

Current Level: 0.9224
Resistance: 0.9435
Support: 0.9100
Last Weeks Range: 0.9186 – 0.0886

The New Zealand Dollar (NZD) continued its upward trend Monday as risk markets improved, against the US Dollar (USD) price reached the lofty heights of 0.6106. We expect the kiwi to stall out around these levels as it approaches oversold status in the face of the RBNZ rate announcement tomorrow. A break above 0.6115 could signal a further run north. The key release this week is the RBNZ cash rate and policy statement- we expect the RBNZ to keep the interest rate unchanged at 5.50%. Comments around easing policy and rate cuts will no doubt be on the agenda, if forecasts for future rate hikes are brought back from late next year we could see the kiwi spike. The pair is trading bang on the 50% fib level at 0.6100 we feel price could reverse lower into the close of the week.

Current Level: 0.6101
Resistance: 0.6400
Support: 0.5800
Last Weeks Range: 0.5995 – 0.6085

US Manufacturing Goods Orders came in lower than markets predicted at -5.4% compared to forecast of -3.2% and a long way off September’s 4.6%. This equates to 16B in orders to 279B in October. The US Dollar index fell sharply, and the New Zealand Dollar (NZD) rose post the news to the 0.6060 area. The kiwi has been making a habit of running out of steam around mid-0.60’s- maybe a reflection of investors starting to price in a “no change” to the 5.50% RBNZ cash rate due next Wednesday. Markets will remain fairly sloppy heading into the weekend due to US Holiday volatility.

The current interbank midrate is: NZDUSD 0.6046

The interbank range this week has been: NZDUSD 0.5988- 0.6086