With all the currency heat going on amid US elections we have seen the Australian Dollar (AUD), New Zealand Dollar (NZD) cross trade within recent ranges. The Aussie getting a little more bids this week extending off last week’s moves from 0.9090 (1.1000) to 0.9040 (1.1065) this morning. Early week the RBA held their interest rate at 4.35% saying upside risk to inflation remains. Last week’s inflation drop from 3.8% to 2.8% y/y is still too high. Unemployment in NZ rose from 4.6% to 4.8% for the second quarter slightly less than the 5.00% forecast. Third quarter employment participation numbers are predicted to fall further putting stress on high interest rates. Support at 0.9000 (1.1110) may not hold till xmas.
Current Level: 1.055
Resistance: 1.1150
Support: 1.0980
Last Weeks Range: 1.0963 – 1.1054