The Australian Dollar (AUD) bounced back against the New Zealand Dollar (NZD) at the start of the week partially reversing last week’s gains to 1.0910 (0.9165). The Aussie continuing its 8-week run against the unfavourable NZD. The next stop is the prior low at 0.9130 (1.0950) however this week’s key data could derail the AUD bulls. NZ inflation Wednesday should reflect a rise to the March quarter of 0.8%, year on year, this should represent a fall from 4.7% to approximately 4.3%. With the rise in the March quarter the RBNZ could see this as “forecasts lie to the upside” thus supporting the NZD. Aussie employment figures Thursday could surprise higher.
Current Level: 1.0909
Resistance: 1.0950
Support: 1.0860
Last Weeks Range: 1.0873- 1.0950