The New Zealand Dollar (NZD) continues its bull run higher from the 8 August level of 0.9050 (1.1050) against the Australian Dollar (AUD) reaching 0.9285 (1.0770) into early morning trading. The AUD fells sharply on last week’s disappointing GDP data following a release of 0.2% in the June quarter confirming signs of economic stagnation. The poor growth was largely due to rises in govt funding and tax benefits. Except for covid it’s worth noting that 0.2% growth represents the worse print since quarter 1 in 2011. The RBA now have questions to consider with regards to rising inflation and policy. Chances of no change from the interest rate of 4.35% on the 24th of this month is at 90%. We expect the Aussie to gain on the kiwi this week
Current Level: 1.0838
Resistance: 1.1000
Support: 1.0720
Last Weeks Range: 1.0795 – 1.0904