The EUR has remained fairly static, considering the downside bias of interest rates from the ECB. The cross rate has settled just above 0.5600 against the NZD and looks set to remain steady, as both Central Banks maintain a similarly dovish monetary policy. Look for growth and trade data out of Europe to make incremental changes in the cross rate.
Current Level: 1.7736
Resistance: 1.8181
Support: 1.7240
Last Weeks Range: 1.7647 – 1.8019
The EUR has remained fairly static, considering the downside bias of interest rates from the ECB. The cross rate has settled just above 0.5600 against the NZD and looks set to remain steady, as both Central Banks maintain a similarly dovish monetary policy. Look for growth and trade data out of Europe to make incremental changes in the cross rate.
Current Level: 0.5620
Support: 0.5500
Resistance: 0.5800
Last week’s range: 0.5550- 0.5665
The GBP cross rate trades around 0.4750, as the Bank of England and the RBNZ appear to be in lock-step, as far as interest rates are concerned. The UK has seen economic conditions improve, in recent times, to welcome the new Government. The Labour Government have condemned the dire fiscal position of the Country and promised cuts and tax rises. These will not be popular and will surely not encourage economic growth. This may lead to some downside in the cross rate.
Current Level: 2.1097
Resistance: 2.1750
Support: 2.0800
Last Weeks Range: 2.0978- 2.1277
The GBP cross rate trades around 0.4750, as the Bank of England and the RBNZ appear to be in lock-step, as far as interest rates are concerned. The UK has seen economic conditions improve, in recent times, to welcome the new Government. The Labour Government have condemned the dire fiscal position of the Country and promised cuts and tax rises. These will not be popular and will surely not encourage economic growth. This may lead to some downside in the cross rate.
Current Level: 0.4730
Resistance: 0.4800
Support: 0.4600
Last Weeks Range: 0.4699- 0.4767
The recovery in the NZD/AUD cross rate has surprised many, considering the positions of the respective Central Banks. The RBNZ has already began to cut interest rates, with more to come, while the RBA has promised to keep rates at elevated levels, to combat stubborn inflation. This should widen interest rate differentials, pushing the cross lower, but the strong NZ economic data has defied logic. The cross reached 0.9250, but has slipped back to trade towards 0.9150, which is more in line with expectations.
Current Level: 1.0890
Resistance: 1.1000
Support: 1.0800
Last Weeks Range: 1.0796 – 1.0920
The recovery in the NZD/AUD cross rate has surprised many, considering the positions of the respective Central Banks. The RBNZ has already began to cut interest rates, with more to come, while the RBA has promised to keep rates at elevated levels, to combat stubborn inflation. This should widen interest rate differentials, pushing the cross lower, but the strong NZ economic data has defied logic. The cross reached 0.9250, but has slipped back to trade towards 0.9150, which is more in line with expectations.
Current Level: 0.9165
Resistance: 0.9300
Support: 0.9100
Last Weeks Range: 0.9160 – 0.9263
The NZD has continued to recover from the lows post-RBNZ rate cuts. Last week the KIWI approached 0.6300, supported by stronger than expected local economic data, including a robust Business Confidence number. This coming week will be dominated by US labour market reports, culminating in the Friday’s Non-Farm Payroll number. The weaker US labour market will only encourage the Fed to begin rate cuts, weakening the reserve. The NZD has slipped back towards 0.6200.
Current Level: 0.6220
Support: 0.6100
Resistance: 0.6300
Last week’s range: 0.6190- 0.6290
The NZD continues to recover, from lows, post-RBNZ rate cut decision. The lows of 0.5880 at the end of July was triggered by the RBNZ dovish commentary and then the rate cut. Since then, the KIWI has had a steady recovery, supported by a surge in global economic confidence and Global Central Bank rate cuts. The interest rate differential remains the same, while positive economic data is increasing risk sentiment. This week has seen a surge in NZ Business Confidence, while next week, markets will focus on NZ Trade and the US labour markets. The NZD has regained ground, to trade 0.6250, with some limited upside, if the global economic scene continues to improve.
The current interbank midrate is: NZDUSD .6270
The interbank range this week has been: NZDUSD .6200-.6250
The AUD cross rate sunk below 0.9000, following the RBNZ rate cut and affirmations that the RBA would continue to hold interest rates at elevated levels, as inflation remains stubbornly high in the Australian economy. Interest rate differentials favour the AUD, but the NZD has continued to recover from lows, rising back towards 0.9200. This price action can be afforded to the positive economic data coming from NZ and risk sentiment. The numbers point to downside on the cross-rate, back towards 0.9000.
The current interbank midrate is: NZDAUD .9225 AUDNZD 1.0830
The interbank range this week has been: NZDAUD .9150 – .9250 AUDNZD 1.0800 – 1.0950
The EUR has a similar experience to the NZD, following rate cuts from the ECB and the RBNZ. Initial downside, has been replaced by rebuilding in the EUR, as economic confidence returns, with the promise of growth from lower interest rates. The interest rate differentials will probably follow each other, remaining static, which is probably where the cross rate will be.
The current interbank midrate is: NZDEUR .5650 EURNZD 1.7699
The interbank range this week has been: NZDEUR .5500 – .5650 EURNZD 1.7699 – 1.8181