FX News

NZD/AUD Conversion:

The New Zealand Dollar (NZD) started the week well extending last week’s gains to 0.9090 (1.1100) against the Australian Dollar (AUD) but has lost ground since with the cross trading back at 0.8960 (1.1160) as we lead into today’s RBA rate decision. The Aussie should be well supported at least over the coming hours with the central bank widely predicted to hike by 50 points to 2.35%. Every 0.5% rise to the cash rate adds roughly 1% to mortgage loans so newly bought property owners could be staring down unmanageable interest rates if not already now but over the coming months. Australian GDP q/q releases tomorrow and should come in at a decent 1.0% as predictions suggest, the calm before the storm as growth is forecast to fall away over the next 12 months. We would be surprised to see the AUD weaken into Thursday.

Current Level: 0.8962 (1.1145)
Resistance: 0.9110 (1.1250)
Support: 0.8890 (1.0980)
Last Weeks Range: 0.8890-0.8986 (1.1128-1.1248)

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