The New Zealand Dollar (NZD) returned to form this week against the Australian Dollar (AUD) crunching out a solid performance with price returning from 0.8905 (1.1230) to 0.8975 (1.1140) into Friday trading. As risk assets were sold off giving way to broad based US Dollar strength the kiwi has feared just a touch better considering bigger picture themes at play. Looking into next week’s action we have the RBA policy meeting and Cash Rate with a further 50 points hike expected to 2.35%, the alarm now is the cause and effect on raising rates to fast with too much attention to inflation. We shall see.
The current interbank midrate is: NZDAUD 0.8947 AUDNZD 1.1167
The interbank range this week has been: NZDAUD 0.8890- 0.8974 AUDNZD 1.1143- 1.1248