RESEARCH VIA DAILY I FOREX REPORT 12 JUNE 2014

DAILY CURRENCY UPDATE

Euro tumbles vs. kiwi after RBNZ rate hike
The euro fell to its lowest level in 13 months against the New Zealand dollar on Thursday after the Reserve Bank of New Zealand raised interest rates for the third time this year, highlighting the diverging monetary policy stance between the euro zone and its major peers.
 
EUR/NZD fell to lows of 1.5586, the weakest since mid-May 2013 and was last down 1.47% to 1.5614.
 
The pair was likely to find support at 1.5475 and resistance at 1.5725.
 
The New Zealand dollar rallied after the RBNZ raised its benchmark interest rate to a five-year high of 3.25% from 3.00% and indicated that borrowing costs would rise again as strong economic growth fuels inflation pressures.
 
"The speed and extent to which the OCR (official cash rate) will need to rise will depend on the future economic and financial data, and its implications for inflationary pressures," RBNZ Governor Graeme Wheeler said in a statement.

Euro falls to fresh 1-1/2 year lows against sterling
The weaker euro fell to fresh one-and-a-half year lows against the pound on Thursday as the diverging monetary policy stance between the European Central Bank and the Bank of England pressured the single currency lower. EUR/GBP was down 0.20% to 0.8043, the weakest level since December 2012.
 
The pair was likely to find support at 0.7960 and resistance at 0.8064, the session high.
 
The euro has weakened broadly as euro zone bonds rallied in recent sessions, widening the yield gap between euro zone sovereign bonds and their major counterparts.

AUD/USD edges up, near 1-month highs
The Australian dollar edged up against its U.S. counterpart on Thursday, hovering near one-month highs even as data showed that the number of employed people in Australia dropped unexpectedly last month.
AUD/USD hit 0.9412 during late Asian trade, the session high; the pair subsequently consolidated at 0.9396, adding 0.15%.
 
The pair was likely to find support at 0.9319, the low of June 6 and resistance at 0.9461, the high of April 10 and a four-and-a-half month high.
 
Official data showed that the number of employed people in Australia declined by 4,800 in May, compared to expectations for a 10,000 rise. April's figure was revised down to a 10,300 increase from a previously estimated 14,200 rise.

NZD/USD rallies over 1% on RBNZ rate hike
The New Zealand dollar rallied over 1% to one-month highs against its U.S. counterpart on Thursday, after the Reserve Bank of New Zealand raised interest rates by 0.25%, while markets eyed the release of U.S. economic reports later in the day.
NZD/USD hit 0.8663 during late Asian trade, the pair's highest since May 15; the pair subsequently consolidated at 0.8664, jumping 1.50%.
 
The pair was likely to find support at 0.8561, the low of May 20 and resistance at 0.8710, the high of May 7.
 
In a widely expected move, the RBNZ raised its benchmark interest rate to 3.25% from 3.00% and suggested that borrowing costs could rise again this year.
 
Commenting on the decision, RBNZ Governor Graeme Wheeler said "it is important that inflation expectations remain contained and that interest rates return to a more neutral level."

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