The New Zealand Dollar (NZD) sits around the lower band of the recent trendline support against the Australian Dollar (AUD) at 0.9020 (1.1080) this morning with markets awaiting both central bank interest rate announcement this week. The RBA is first up later today and could release a hawkish policy tone with a 25-point cut. The RBA has maintained the rate steady at 4.35% since November 2023. Tomorrow the RBNZ will also cut rates 50 points to 3.75% with a small chance of a 75-point cut. The policy divergence will be the telling factor with the RBNZ predicted to be downbeat (dovish) around 2025 incoming data predictions implying a more aggressive easing plan. If we are correct this could send the NZD/AUD well into the high 80’s.
Current Level: 1.1084
Resistance: 1.1150
Support: 1.1030
Last Weeks Range: 1.1076 – 1.1142