FX News

NZD/AUD Conversion:

The New Zealand Dollar (NZD) retraced higher moves in early week trading against the Australian Dollar (AUD) back to 0.9240 (1.0820) as kiwi outperformed. Australian Inflation has surged again from 3.5% to 5.1% year on year surpassing market estimates of 4.6% marking the highest read since the early 2000’s and adding more pressure for the RBA to hike and hike hard. Risk off conditions backed the AUD into Thursday with prices down at 0.9175 (1.0900). Prospects that the RBA will hike next week will make it tough for the kiwi to catch a break over the next few sessions, with inflation now well above the 2-3% band, the RBA will rapidly bring in a tightening phase starting with a rise of 0.15% next week and another one in June. Also on the economic docket next week is NZ employment figures expected to be bumper and may give the NZD a push.

Current Level: 0.9178 (1.0886)
Resistance: 0.9275 (1.1000)
Support: 0.9090 (1.0780)
Last Weeks Range: 0.9092-0.9195 (1.0875-1.0998)

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