The New Zealand Dollar (NZD) declined off the weekly open to 0.9100 (1.0990) against the Australian Dollar (AUD) but turned bid Tuesday clawing back losses to 0.9115 (1.0970)- perhaps off the back off mixed Chinese inflation data- prices rose in the month of April with the y/y number printing at 0.3% vs 0.1% in March. Of note this morning NZ Card Retail Sales declined -0.4% in April and net migration lost 52,500 people in the year ending March 2024 won’t bode well for the kiwi. Australian unemployment prints Thursday with expectations of a rise to 3.9%, this will be priced into the RBA rate cut curve and more particularly the NZD/AUD if the number comes in benign. We expect a retest of 0.9100 (1.0985) over the next day or so.
Current Level: 1.0973
Resistance: 1.1025
Support: 1.0950
Last Weeks Range: 1.0948- 1.1029