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When converting New Zealand dollars (NZD) to EURO or EURO to NZD, by exchanging via Direct FX, you will save a significant amount of money. Our wholesale currency exchange rates for money transfers are significantly more competitive than bank foreign exchange rates. Being Australasian based, we specialise in knowing what drives NZD and EURO currency conversion rates.
NZD to EURO Overview:The NZD is regarded as a "growth currency", and will therefore generally appreciate when the global economic outlook is positive. Whilst he EURO encompasses is a melting pot of countries, its overall performance is heavily driven by the economic fortunes of Germany, and its manufacturing base. Whilst the economies of New Zealand and the Euro zone individually have little in common, the NZD to EURO exchange rate remains a relatively stable one, when compared to others. The EURO will be interesting to watch as it challenges the USD as the global reserve currency.
|
Historical Ranges: |
1 year |
5 years |
10 years |
|
NZD/EURO |
.5108 - .6384 |
.3885 - .6384 |
.3885 - .6384 |
|
EURO/NZD |
1.5664 - 1.9575 |
1.5664 - 2.5740 |
1.5664 - 2.5740 |
Current Official Cash Rates:
Reserve Bank of New Zealand (RBNZ): 2.5% European Central Bank (ECB): 1.00%
NZD EURO Weekly Updates: Back to FX Updates
Monday 14th May 2012 4:42 PM (NZT)
This pairing was contained by a small range throughout the course of the last week. Whilst the fears for global growth are being driven by the uncertainty in Europe, the NZD has matched any EURO weakness of late. The NZD may find some support in the short term, given it is at pivotal levels on other pairings. Today’s disappointing NZ retail sales number was of limited impact and now the focus resumes on Europe. GDP numbers on Tuesday provide the initial focus, ahead of the inflation numbers Wednesday.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6066 |
.6000 |
.6200 |
.6040 - .6108 |
|
EURO/NZD |
1.6485 |
1.6130 |
1.6666 |
1.6121 - 1.6559 |
Monday 7th May 2012 :42 PM (NZT)
The NZD saw further downward pressure throughout most of last week. The election issues in France and Greece seem to have stalled the NZD under performance and the EURO has seen periods of pressure so far today. The focus will likely continue in Europe, and on the Greek politics in particular. The uncertainty around the ongoing Greek commitment to stay within the Euro-zone is providing the largest unknown. Any real resurgence from the NZ dollar will be limited in the short term, except in the event of some structural change to Greece’s position within the Euro-zone.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6201 |
.6000 |
.6200 |
.6039 - .6203 |
|
EURO/NZD |
1.6126 |
1.5875 |
1.6400 |
1.6121 - 1.6559 |
Monday 30th April 2012 4:42 PM (NZT)
This pair again traded a fairly contained range throughout the course of last week. Only late in the week after some strange US dollar weakness did the NZD push on up to the highs. Given its limited reaction to the early European news of the Spanish credit downgrade and political tensions, the late rally from the NZD was somewhat surprising. One explanation could be the successful NZ Govt Bond tender late in the week. This week sees the focus come in on the NZ employment numbers on Thursday, ahead of the ECB monetary policy decision, also on Thursday. No change is expected from the ECB, but pressure is building for a cash rate cut. The statement will be closely followed, as will the respective member central comments.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6206 |
.6100 |
.6300 |
.6135 - .6217 |
|
EURO/NZD |
1.6113 |
1.5875 |
1.6400 |
1.6085 - 1.6299 |
Monday 23rd April 2012 4:06 PM (NZT)
The NZD dollar saw periods of sustained pressure from the EURO last week. Whilst the EURO was also under pressure at times, the lower Fonterra auction numbers and benign NZ inflation number put the NZD under pressure. As we approach the lower levels of an almost four month old .6100/.6350 (1.5750/1.6400) range, expect gains for the EURO to be harder fought from the current levels. The RBNZ monetary policy decision on Thursday will likely be unchanged and garner little reaction from the market. In Europe the debt markets will be under constant review, as will the polling in France and the various manufacturing numbers as released.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6190 |
.6100 |
.6300 |
.6162 - .6312 |
|
EURO/NZD |
1.6155 |
1.5875 |
1.6400 |
1.5843 - 1.6228 |
Monday 16th April 2012 4:01 PM (NZT)
The NZD saw mostly grinding appreciation against the EURO last week. The escalation of concerns about the ability of the Spanish Government and banks to access funding markets drove the move. This week starts with the pairing right on the crucial .6300 (1.5875) level. Consolidation through this level opens up the way for further strength from the NZD. So it is going to be an interesting week with much of the focus coming from the European debt markets, and the NZ inflation number on Thursday.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6298 |
.6100 |
.6300 |
.6206 - .6318 |
|
EURO/NZD |
1.5878 |
1.5875 |
1.6400 |
1.5828 - 1.6113 |
Tuesday 10th April 2012 5:55 PM (NZT)
The NZD saw grinding appreciation over the EURO throughout the course of last week. Record European unemployment numbers set the scene early, and from there the increased focus on the peripheral member debt markets kept the market on its toes. Political instability around various upcoming elections may also be adding to the lowered EURO demand. This week should see further ground for the NZ dollar more hard fought if it approaches the extremes of the recent range at .6300 (1.5875). The economic data should be of limited impact with the most likely leads coming from the wider equity market sentiment, and general appetite for peripheral Euro-zone member debt..
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6251 |
.6100 |
.6300 |
.6127 - .6292 |
|
EURO/NZD |
1.5997 |
1.5875 |
1.6400 |
1.5893 - 1.6321 |
Monday 2nd April 2012 5:11 PM (NZT)
This pair had a subdued last week as the EURO was not able to maintain its recent momentum. Support close by at .6100 (1.6400 resistance) is the initial target for the pair. Consolidation through this level would open up the way for further investigations back closer towards more historically average levels. This week again sees a lack of economic data in New Zealand. In Europe the primary focus will be on conditions in debt markets, as the ECB will no doubt leave monetary policy unchanged at their announcement on Wednesday.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6143 |
.6100 |
.6300 |
.6115 - .6182 |
|
EURO/NZD |
1.5279 |
1.5875 |
1.6400 |
1.6176 - 1.6353 |
Monday 26th March 2012 4:50 PM (NZT)
The NZ dollar was outperformed by the EURO last week, although it bounced from its lows. The slowing growth outlook for NZ’s important Asian trading partners, coupled with the weak 4th quarter NZ GDP number, eased the way for NZD depreciation. In Europe this week’s economic data focus will be on the German Business sentiment numbers on Monday. In NZ it will be the NBNZ Business Confidence Survey release on Thursday. The ongoing debate over measures to contain further possible European debt contagion at the EU summit, will also be closely watched by the market.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6155 |
.5980 |
.6180 |
.6096 - .6277 |
|
EURO/NZD |
1.6247 |
1.6181 |
1.6722 |
1.5931 - 1.6404 |
Monday 19th March 2012 4:10 PM (NZT)
This pairing continued to trade in its recent range throughout the course of last week. At times moves within the range were rapid. Most of this was driven by moves in the EURO on other pairings. It is likely that the familiar range will continue this week. Current levels continue to offer good value buying of EUR with NZD. European focus has moved from Greece for the time being, and manufacturing numbers and ECB head Draghi’s speech on Friday will be closely watched. In New Zealand the current account and GDP numbers on Wednesday and Thursday will be the highlight, but are unlikely to pushing the pairing into any new range.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6272 |
.6175 |
.6375 |
.6190 - .6291 |
|
EURO/NZD |
1.5944 |
1.5690 |
1.6200 |
1.5895 - 1.6155 |
Monday 12th March 2012 4:05 PM (NZT)
This pairing remains within the recently familiar range. The NZ dollar suffered from aggressive selling pressure early in week after the Chinese growth expectations were downgraded for 2012. The NZD fight back was less dramatic and it saw grinding appreciation over the EURO. Interestingly, the EURO did not see dramatic price action following the release of the Greek debt swap progress. The focus will again be in Europe this week, in the absence of any NZ economic news. German economic sentiment on Tuesday, and inflation number Wednesday will be closely watched. Both currencies seem vulnerable in the current environment, but do not expect a break out of the range either way this week.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6247 |
.6175 |
.6375 |
.6161 - .6297 |
|
EURO/NZD |
1.6007 |
1.5690 |
1.6200 |
1.5881 - 1.6231 |
Monday 5th March 2012 3:35 PM (NZT)
This pair remains in what has become familiar territory over the last eight weeks. The EUR was unable to push further with its gains last week, after the ECB longer term lending numbers were at the upper end of expectations. This week will likely see both respective central banks announce unchanged cash rates at their meetings. The primary focus will likely be the progress of the Greek debt swap proposal, and the interest rates on Portuguese debt.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6275 |
.6175 |
.6375 |
.6192 - .6314 |
|
EURO/NZD |
1.5939 |
1.5690 |
1.6200 |
1.5838 - 1.6150 |
Monday 27th February 2012 4:15 PM (NZT)
The NZD dollar was under constant pressure from the resurgent EURO throughout the course of last week. The market is taking heart from the ongoing process towards the successful introduction of the Greek debt swap deal. Expect focus on the PSI (debt deal) and the ECB long term funding issuance to continue this week. The NZD focus will come solely from the NBNZ business confidence survey on Wednesday. With the EURO still at historically low levels against the NZ dollar, further gains from the current levels cannot be ruled out. A consolidated break of the .6175 (NZDEUR 1.6200) level, opens up the way for a further move back towards more historically average levels.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6205 |
.6175 |
.6375 |
.6192 - .6367 |
|
EURO/NZD |
1.6116 |
1.5690 |
1.6200 |
1.5705 - 1.6150 |
Monday 20th February 2012 5:15 PM (NZT)
The NZD again set new highs against the EURO last week. The outcome from the Euro-groups decision on the further Greek bailout funds will likely provide the focus for this week. Surprisingly, a positive result will unlikely see the EURO dramatically outperform on an immediate basis. The position of the NZD as a growth asset, may see it attract demand on a positive result also. More likely would be some kind of steady appreciation over the coming week by the EURO, as details from a finalized debt swap are released. In the meantime, the NZD will maintain its elevated position, but forging further appreciation will probably prove difficult.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6368 |
.6175 |
.6375 |
.6254 - .6411 |
|
EURO/NZD |
1.5703 |
1.5690 |
1.6200 |
1.5598 - 1.5990 |
Monday 13th February 2012 5:15 PM (NZT)
The EURO saw grinding appreciation over the NZ dollar throughout last week. A slightly more positive ECB statement accompanying its unchanged monetary policy decision helped the EURO. The prospect of moving closer to some finality on the Greek debt swap issue, also saw some investors with “sold EURO” positions covering, and this added some momentum to the move. There is likely to be increased market noise this week following the positive austerity vote in the Greek parliament, but ahead of the EU/IMF confirmation of bailout funds. Current levels still represent great value buying of EURO with NZ dollars. The economic data will take a back seat this week, given the larger forces at play in Greece in particular.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6288 |
.6175 |
.6375 |
.6238 - .6377 |
|
EURO/NZD |
1.5903 |
1.5690 |
1.6200 |
1.5681 -1.6031 |
Monday 6th February 2012 5:15 PM (NZT)
The NZ dollar continued its recent strong performance against the EURO, setting a new record high of .6384, after the US employment numbers on Friday night. The better than expected global economic data, and stablising core European debt markets, have provided the boost in demand for the growth currencies. All eyes remain on Europe and the potential conclusion of the Greek debt negotiations. The ECB also have their monthly monetary policy meeting this week, but no further policy initiatives are expected at this time. In New Zealand this week sees the focus on the labour market. Labour cost numbers are released on Tuesday, and are followed by the quarterly employment numbers on Thursday. Any news from Greece, with regards to the bond swap program, will see the EURO react.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6351 |
.5500 |
.5700 |
.6213 - .6384 |
|
EURO/NZD |
1.5746 |
1.7540 |
1.8180 |
1.5664 -1.6095 |
Tuesday 31st January 2012 5:15 PM (NZT)
The NZ dollar set new all time highs against the EURO early in the New Year. Last week the performance of the pair was a little more mixed and the NZD gave up a little ground on the week. The European outlook continues to be muddled, with no definitive path apparent. The complex nature of the issues means that any great resurgence of the EURO is unlikely in the short term. The performance of the NZD with be driven by the global outlook for the most part. Ironically the lip service given to easier monetary policy in the US is providing demand for NZ dollars in the short term. Expect further sideways movement in the boarder .6100 - .6300 range in the short term. With little in the way of top tier economic data this week, NZ employment numbers Tuesday and the ECB monetary policy decision will be closely watched next week.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6244 |
.6100 |
.6300 |
.6183 - .6287 |
|
EURO/NZD |
1.6015 |
1.5875 |
1.6400 |
1.5900 - 1.6173 |
Monday 19th December 2011 5:40 PM (NZT)
This pairing saw mainly sideways trade within a familiar range last week. Of note was the NZD resurgence from the lows on Thursday to the high set late Friday. This move illustrates the thin nature of markets coming into Christmas, as there was no material news of note. Expect further range bound trade this week. The NZ focus comes with the GDP number on Thursday. In Europe, apart from the constant eye on the debt respective sovereign markets, a speech by ECB President Draghi on Monday and German business climate numbers on Tuesday will be closely watched. A break of the resistance at .5850 - .5900 (support EURNZD 1.6950 - 1.7100), opens the way up for a further leg higher towards .6000 (lower EURNZD 1.6660).
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5834 |
.5650 |
.5850 |
.5744 - .5862 |
|
EURO/NZD |
1.7141 |
1.7100 |
1.7700 |
1.7059 - 1.7409 |
Monday 12th December 2011 5:40 PM (NZT)
The New Zealand dollar relative to the EURO was relatively stable last week, until the low Chinese inflation data. This sent the NZD lower in line with other growth assets. With an absence of economic data this week, expect the lead to come from Europe. If the post EU summit positive sentiment continues, expect the NZD to push back towards resistance at .5850 (support EURONZD 1.7100). German economic sentiment numbers on Tuesday will be the initial focus, ahead of inflation numbers on Thursday.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5788 |
.5650 |
.5850 |
.5734 - .5854 |
|
EURO/NZD |
1.7277 |
1.7100 |
1.7700 |
1.7141 - 1.7440 |
Monday 5th December 2011 5:25 PM (NZT)
The NZ dollar saw sharp appreciation against the EURO last week. A reversal of the risk appetite caught many speculative investors off guard. The subsequent stop-loss NZD buying saw the move accentuated. This was carried on by positive reaction to the coordinated central bank efforts to supply US dollar funding to stressed banks. This week sees the return of the focus back to monetary policy. The RBNZ are first of the two central banks to make announcements on Thursday. Expect no change from the RBNZ, but their statement will be closely watched. It is increasingly likely that the ECB will cut the European cash rate by 25pts, in an effort to stimulate the ailing economy.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5805 |
.5650 |
.5850 |
.5585 - .5818 |
|
EURO/NZD |
1.7227 |
1.7100 |
1.7700 |
1.7188 - 1.8149 |
Monday 28th November 2011 5:25 PM (NZT)
This pairing saw initial NZD weakness at the start of last week before stablising. The pairing has started this week with the NZD taking back a chunk of its lost ground, as rumours of an IMF funding package for Italy circulate. Should the rumours be correct, a sharp rally in risk assets is to be expected in the short term. Today’s slight increase in the NBNZ Business Confidence survey had little reaction. European inflation and employment numbers on Wednesday will be the focus, aside from the wider debt issues in the market.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5648 |
.5500 |
.5700 |
.5510 - .5650 |
|
EURO/NZD |
1.7705 |
1.7540 |
1.8180 |
1.7699 - 1.8149 |
Monday 21st November 2011 6:15 PM (NZT)
The EURO put pressure on the NZ dollar throughout the course of last week. The debt inspired risk aversion continues to weigh on growth assets and this can be expected to continue this week. The NZD supply that came with the maturity of the November 2011 NZ government bond, may continue this week, to what extent remains to be seen. The RBNZ inflation expectations survey on Tuesday, is unlikely to garner too much reaction given the stronger forces currently at play. The focus will remain on the state of the European bond markets and the associated funding pressures.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5598 |
.5500 |
.5700 |
.5571 - .5740 |
|
EURO/NZD |
1.7864 |
1.7540 |
1.8180 |
1.7422 - 1.7950 |
Monday 14th November 2011 5:15 PM (NZT)
This pair stayed within the expected range last week, even in the face of spiraling debt concerns in Europe. The NZD lost ground as the risk aversion hit its peak, but has bounced back over the weekend with the change of leadership in Italy and Greece. Positive NZ retail sales numbers here this morning have also helped sentiment. The focus now is again on Europe for the remainder of the week. Not just on the debt markets, but also with the GDP and inflation numbers, which are due for release on Tuesday and Wednesday respectively. Expect further range trading from this pair this week.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5723 |
.5650 |
.5850 |
.5684 - .5792 |
|
EURO/NZD |
1.7473 |
1.7100 |
1.7700 |
1.7265 - 1.7593 |
Monday 7th November 2011 5:15 PM (NZT)
This pair has been interesting over the last few weeks. Obviously events in Europe have been the focus for the wider market and directly affecting overall market appetite for risk. Expect this to continue this week, but potentially with the focus moving from Greece to Italy now that Greek politicians have agreed to progress the bailout aid legislation. The NZD saw its highs against the EURO last week before the Greek referendum debacle played itself out, and pushed the NZD to the lows. However the pair remains in very familiar territory at current levels, within the .5650 - .5850 range it has seen for the last six weeks. Europe will continue to provide the lead for this pair as we head into the end of 2011.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5775 |
.5650 |
.5850 |
.5701 - .5848 |
|
EURO/NZD |
1.7316 |
1.7100 |
1.7700 |
1.7100 - 1.7541 |
Monday 31st October 2011 4.50 PM (NZT)
This pair remains in familiar territory for the time being. The NZD started last week on the highs and closed at almost the same level as an indication of the price action. As the nervousness ahead of the EU summit mixed with the lower than expected NZ inflation numbers, the NZD lows for the week were reached. Along with the wider market appetite for risk, which benefits the NZD when positive. This week sees the ECB the focus in Europe, as it makes its monetary policy decision on Thursday. In NZ, Tuesday labour cost index will be closely watched ahead of the 3
rd quarter employment numbers on Thursday.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5775 |
.5650 |
.5850 |
.5696 - .5823 |
|
EURO/NZD |
1.7316 |
1.7100 |
1.7700 |
1.7173 - 1.7556 |
Monday 17th October 2011 4.50 PM (NZT)
The NZ dollar saw a little appreciation against the EURO last week. The lead for the move was provided be the overall market increase in risk appetite. There was no top tier economic data in NZ last week, and this week is much the same. In Europe the focus continues to be on the French/German plan to stablise the debt markets and the banking sector. Details are expected to be released on the 23
rd October in Brussels. Any reemergence of risk aversion would likely see the NZD given up ground it made last week.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5795 |
.5650 |
.5850 |
.5693 - .5808 |
|
EURO/NZD |
1.7256 |
1.7100 |
1.7700 |
1.7218 - 1.7565 |
Monday 10th October 2011 5.00 PM (NZT)
This pair was relatively stable throughout the course of last week, with the NZD just taking back a little of its recently lost ground, as the wider market risk aversion abated as the week progressed. Expect the focus to remain very much on the debt situation in Europe. Whilst this has been a seemingly unending debacle, expect clarification of a path forward to come from officials in the coming month or so. Until then the whippy nature of the price action should continue. Current levels still represent good value buying of EURO with NZD, from a historical perspective.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5743 |
.5650 |
.5850 |
.5651 - .5802 |
|
EURO/NZD |
1.7413 |
1.7100 |
1.7700 |
1.7235 - 1.7699 |
Monday 3rd October 2011 5.10 PM (NZT)
The NZD continues to see some pressure from the EURO, albeit the NZD has bounced back from the lows it saw following the dual agency NZ sovereign debt credit downgrade. News over the weekend that Greece are struggling to make deficit targets has again hurt the prospects for the EURO. The NZ focus for the week will be the NZIER quarterly survey of business opinion due for release on Tuesday. In Europe, the ECB monetary policy announcement is the focus. The chance of a 50 pt cut to the cash rate has dropped significantly with last week’s higher than expected inflation number, so a 25 pt cut appears to be a done deal. Meanwhile the issues with Greece continue and it appears to be a matter of timing and management of a Greek default in the coming months. Ironically this will keep the pressure on the NZ dollar, as the global growth outlook lowers on this prospect.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5690 |
.5550 |
.5750 |
.5629 - .5840 |
|
EURO/NZD |
1.7575 |
1.7400 |
1.8020 |
1.7123 - 1.7765 |
Monday 26th September 2011 6.42 PM (NZT)
The NZD gave up further ground against the EURO last week as the NZD was hit following the 2
nd quarter NZ GDP number, and the risk aversion following the US FED’s monetary policy statement. Progress from current levels will be interesting. The downside bias remains in place with strong initial support around .5720. Exactly what pans out in Europe is impossible to predict, but what is certain is that it is a complex blend of economic (growth), financial (debt) and political (civil unrest) issues that need to be addressed, in order to see the peripheral member states and their debt issues contained. Current levels still represent fairly good value buying of EURO with NZD.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5732 |
.5720 |
.5920 |
.5717 - .6041 |
|
EURO/NZD |
1.7446 |
1.6890 |
1.7480 |
1.6554 - 1.7492 |
Monday 19th September 2011 5.15 PM (NZT)
The NZD was relatively stable against the EURO last week. After the RBNZ monetary policy statement, we saw some softness come into the NZD, but this was reversed on Friday as the US equity markets held onto their 5
th straight day of gains. The risks on this pair remain similar this week. The European debt crisis remains the primary focus. In New Zealand, Thursday’s 2
nd quarter GDP release will be closely watched. Expect the pair to remain in the broader .5900 - .6150 range this week. These levels still represent very good value buying of EURO with NZD.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6023 |
.5900 |
.6150 |
.5919 - .6034 |
|
EURO/NZD |
1.6603 |
1.6260 |
1.6950 |
1.6573 - 1.6895 |
Monday 12th September 2011 4:55 PM (NZT)
The NZD unsurprisingly outperformed the EUR throughout the course of the last week. The Euro-zone debt fears have intensified as the proposition of the Greek default increasingly has the solvency of the banking sector under the spotlight. The resignation of ECB board member Stark further fuelled fears about the financial leadership in Europe at this important time. Apart from the constant focus on Europe, expect the market to carefully watch the statement from the RBNZ as it is expected to leave the cash rate unchanged on Thursday.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.6015 |
.5900 |
.6150 |
.5862 - .6052 |
|
EURO/NZD |
1.6625 |
1.6260 |
1.6950 |
1.6524 - 1.7059 |
Monday 5th September 2011 6:05 PM (NZT)
The NZD has seen grinding appreciation against the EURO as the widespread focus on the regions debt issues continues. At the Government level, there is ongoing resistance from the contributing member states with regards to the Greek bailout extension. The European Central Bank (ECB) also remain active in the debt markets by buying Government bonds to reassure investors. At the bank level there are ever increasing reports of funding issues between various European banks. New IMF head Lagarde even went to the lengths to publically state that Governments may have to step in and support banks if recapitalization is required. Meanwhile the economic data remains weak almost across the board. In the absence of local NZ data of importance, expect the focus to remain in Europe. Further investigations to the upside for the NZ dollar cannot be ruled out, even with the softer global growth profile, that would normally see NZD demand fall. Interestingly there has been less noted central bank buying of EURO of late, and this has certainly eased the way for the progress of the NZD.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5963 |
.5850 |
.6150 |
.5782 - .5993 |
|
EURO/NZD |
1.6770 |
1.6260 |
1.7095 |
1.6686 - 1.7652 |
Monday 29th August 2011 6:35 PM (NZT)
Last week the NZD reversed the losses against the EUR that it made in the duration of the week previous. In illiquid and uncertain markets, the surprisingly strong Chinese and US economic numbers saw the growth assets in demand, and this obviously helped the NZD outperform. From the European perspective, debt concerns remain the focus and the bank capitalization is the recent focus. Expect this theme to remain in place for the coming week, in the absence of top tier data in the Euro-zone. In New Zealand we have building numbers due Tuesday and business confidence numbers on Wednesday.
|
|
Current level |
Support |
Resistance |
Last week’s range |
|
NZD/EURO |
.5810 |
.5680 |
.5900 |
.5665 - .5828 |
|
EURO/NZD |
1.7211 |
1.6950 |
1.7605 |
1.7159 - 1.7652 |
