The RBNZ left rates unchanged at their last meeting, citing uncertainty on international markets, in the form of trade negotiations with the US. The uncertainty has hit the currency, which has surrendered 0.6000, and remains vulnerable to tariff sanctions from the USA. The deadline for agreements is August 1st, so expect some volatility between now and then.
Current Level: 0.5965
Support: 0.5920
Resistance: 0.6100
Weekly Range: 0.5905 - 0.6012
The RBA and the RBNZ held interest rates steady, both citing international uncertainty, leading up to the August 1st deadline for US trade negotiations. The cross rate has suffered significant losses, falling to around 0.9150, in the last month. Australia and NZ both have not succeeded in securing a trade deal with the USA, thus making them vulnerable. The US slapped a tariff on all copper imports, worldwide, boosting Australian mining interests and the AUD.
NZD/AUD
Current Level: 0.9143
Support: 0.9090
Resistance: 0.9175
Weekly Range: 0.9100 - 0.9173
AUD/NZD
Current Level: 1.0925
Support: 1.0900
Resistance: 1.1000
Weekly Range: 1.0901- 1.0989
The UK cross with the NZD is trading just above 0.4400, but unlike NZ, the UK have secured a trade deal with the US. The uncertainty over trade negotiations does not impact the GBP, but recent weak economic data does, thus undermining the currency. The British fiscal position is in a terrible place and is impacting the performance of the GBP.
NZD/GBP
Current Level: 0.4422
Support: 0.4400
Resistance: 0.4470
Weekly Range: 0.4411 - 0.4466
GBP/NZD
Current Level: 2.2614
Support: 2.2370
Resistance: 2.2760
Weekly Range: 2.2389 - 2.2666
The EUR has been under pressure, from the failure to secure a trade deal with the USA, but at least they are at the negotiating table, unlike NZ and Australia. Trump has been calling for a 15-20% tariff on all imports from Europe, but the Europeans have a few more days of negotiating left. The ECB announce their latest interest rate decision later this week, but are likely to keep their powder dry, until there is an outcome from the trade negotiations. The NZD/EUR cross rate remains in the low 0.51’s.
NZD/EURO
Current Level: 0.5100
Support: 0.5050
Resistance: 0.5235
Weekly Range: 0.5089 - 0.5155
EURO/NZD
Current Level: 1.9607
Support: 1.9100
Resistance: 1.9800
Weekly Range: 1.9396 - 1.9648
The AUD has surrendered 0.6600, as uncertainty over US trade negotiations, impact the currency. The AUD is vulnerable and a terrible latest Unemployment report, served only to add, to the downward pressure. The US worldwide tariff sanctions on copper boosted Australian mining interests and the currency. Conditions will remain uncertain for the next week or so.
Current Level: 0.6520
Support: 0.6450
Resistance: 0.6600
Weekly Range: 0.6453 - 0.6587
The UK is one of the few Countries with a trade deal in place with the US, but the economic mismanagement of the British Government, is undermining the currency. UK fiscal deficits are becoming a problem and bond yields reflect that, creeping ever higher. The cross rate is improving, due to this, pushing up to 0.4450. This will likely continue unless the Australians fail to secure a trade deal with the US.
AUD/GBP
Current Level: 0.4832
Support: 0.4670
Resistance: 0.4950
Weekly Range: 0.4820 - 0.4892
GBP/AUD
Current Level: 2.0695
Support: 2.0200
Resistance: 2.1400
Weekly Range: 2.0440 - 2.0744
The AUD/EUR cross rate has once again slipped back below 0.5600, as both currencies suffer uncertainty from trade and tariffs. The EU is in Washington negotiating, whereas the Australian Government, are not even officially talking. The cross rate will move according to the outcome of negotiations, while any further sanctions on minerals will likely be a boost the AUD.
AUD/EURO
Current Level: 0.5575
Support: 0.5525
Resistance: 0.5680
Weekly Range: 0.5572 - 0.5634
EURO/AUD
Current Level: 1.7937
Support: 1.7600
Resistance: 1.8100
Weekly Range: 1.7749 - 1.7945
