After 7 months of continued losses for the New Zealand Dollar (NZD) vs the Australian Dollar from 0.9720 (1.0290) in November the pair looks to have consolidated around the 0.9100 (1.1000) zone. Tracking sideways now over the past 2-3 weeks the massive shifts we have seen over the past few months have halted. The RBNZ raised their interest rate yesterday to 2.5% from 2.0% as predicted with Governor Ore saying there were more to follow. Upside inflation risks remain for the central bank with the target inflation target still in the 1-3% band. Prices in major resource commodities continue to move lower- the iron ore price is down at 107 per tonne adding to AUD woes, a further slump could see the NZD push higher into the 0.92’s (1.0870) over the coming days. Later in the day we have Aussie jobs data which could improve the AUD.
The current interbank midrate is: NZDAUD 0.9065 AUDNZD 1.1027
The interbank range this week has been: NZDAUD 0.9030- 0.9120 AUDNZD 1.0964- 1.1073