Commodities, equities and general risk products have been running hot of late in a most bizarre fashion, supporting the Australian Dollar (AUD) a little more than the New Zealand Dollar (NZD). Volatility in the cross remains forefront while Ukraine/Russian negotiations have not resulted in a ceasefire. In fact Russia have intensified attacks on Ukrainian cities and captured the Black Sea port of Kherson. The good news- Russian and Ukraine have agreed to hold third round talks. The RBA release Tuesday brought a swath of sideways movement as the RBA said they would be patient in monitoring inflation – committed to a supportive monetary policy and not raising the cash rate until inflation is within the 2.0% to 3.0% target range. Iron Ore came off 130.00 early in the week posting 144.50 this morning underpinning AUD moves. We would be surprised if we saw 0.9250 (1.0810) the AUD looks to be running out of steam.
The current interbank midrate is: NZDAUD 0.9273 AUDNZD 1.0776
The interbank range this week has been: NZDAUD 0.9263- 0.9340 AUDNZD 1.0706- 1.0795