The New Zealand Dollar (NZD) dropped to 0.8950 (1.1175) levels midweek against the Australian Dollar (AUD) the lowest price in the cross since August 2018. Since then, the NZD has bounced back to around 0.9000 as the Aussie underperformed, markets backed off predictions of RBA hike expectations based on weaker Retail Sales. Earlier Australian CPI q/q came in at 1.8, raising the year-on-year figure in June from 5.1% to 6.1% – rising prices in food and energy posting the biggest rises. Next weeks’ RBA cash rate release with a 50 point move higher to 1.85% has been priced in. Speak around the RBA’s future policy stance will be key.
The current interbank midrate is: NZDAUD 0.8989 AUDNZD 1.1117
The interbank range this week has been: NZDAUD 0.8946- 0.9061 AUDNZD 1.1036- 1.1177