Reserve Bank of New Zealand interest rate

Posted on Wednesday, September 14th, 2011 at 1:36 pm in News by The Agent.

Worldwide currencies to look out for

Reserve Bank of New Zealand interest rate announcement will be issued this evening where the markets are expecting the RBNZ rates to remain on hold due to the current global climate. There is some speculation that although there is some movement the market expectations could be wrong and the Reserve Bank of New Zealand could raise the interest rate causing debate that is exercising the minds of borrowers and investors alike.
The annualised figures for Eurozone Industrial Production is expected to rise dramatically from 2.9% to 4.6% when they are released today at 10am and if realised will go somewhere to help the euro ease recent losses.
US Producer Price Index and US Retail Sales figures are expected to fall and prices to rise putting more pressure on the already weak US economy when they are released at 1.30 pm.

ELSEWHERE

· USD continues to enjoy strength as people buy into it on risk aversion
· Analyst warn Eurozone debt concerns may limit the euro’s scope for gains
· EURUSD falls below 1.36 to hit a low of 1.3557 before recovering
· French banks come under fire as Greece faces default, Moody’s cut certain SocGen and Credit Agricole rating and say there is a high chance that BNP will need assistance.
· Agencies Moody’s and Fitch both agree that certain area of Spain are at risk, good chance this will put downward pressure on the overall rating
· A report I read this morning mentioned an article in the Times suggesting there is a chance that Germany may leave the euro.
· On CNBC yesterday, Norway came out on top of a list of countries least likely to face financial difficulties such as default, Switzerland came second.
· Australian Q2 CPI revised lower overnight, potentially could have an effect on growth forecasts.

IN THE UK

· UK CPI inflation rate rises to 4.5%, the highest reading since September 2008
· Sterling falls vs dollar to nearly hit a 7 ½ month low of $1.5762
· RPI comes in at 5.2% beating the expectations of 5%
· Sterling falls to a level of €1.1529 after MPC member Adam Posen reiterates his stance on further QE following the CPI reading

Key Support and Resistance Levels
	Support			Resistance
GBPUSD	1.5631	1.5696	1.5739	1.5847	1.5912	1.5954
GBPEUR	1.1369	1.1440	1.1488	1.1609	1.1684	1.1732
EURUSD	1.3399	1.3478	1.3579	1.3760	1.3840	1.3941

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