The New Zealand Dollar (NZD) is still underperforming against the Australian Dollar (AUD) sitting just off the yearly bottom of 0.9070 (1.1026) at 0.9078 (1.1015) the 11-month low as I write. The kiwi had a good run higher late last week but was unable to hold levels around 0.9115 (1.0970). A hawkish slant at today’s RBA meeting could be the catalyst for the Aussie strength of late with prospects of a hike not outside the realms of probability. Even if the RBA maintain their 4.35% the rhetoric could be centered around high inflation. The next rate cut is forecast for November at the earlier, there is a chance this could get pushed out. If this happens we would almost certainly see further strength in the AUD and a look at 0.9000 (1.1110)
Current Level: 1.1020
Resistance: 1.1050
Support: 1.0900
Last Weeks Range: 1.0958- 1.1026