11:00 AM (NZT) The NZ dollar has had a week of grinding appreciation against the EURO. Better economic news for the most part has combined with the reversal of the risk aversion trades, and this has driven then demand for the  NZD. Current levels represent very good value buying of EURO with New Zealand dollars. Even after this week’s move the pair remains in somewhat familiar territory. The .5950 resistance (EURNZD 1.6800 support) provides the next target area for the pair. This week’s risk appetite has been somewhat surprising and could well be a product of the illiquid nature of the festive season markets. Expect the European debt situation to continue its prolonged drama in 2012, which will affect global growth and therefore the performance of the NZ dollar.
 
The current interbank midrate is:                                                            NZDEUR .5914                                          EURNZD 1.6909
                                                               
The interbank range so far this week to date has been:                 NZDEUR .5800 - .5940                           EURNZD 1.6835 – 1.7241