The Australian Dollar (AUD) extended early week gains post a decent Retail Sales print and hike of interest rates from the RBA. Aussie buying was strong taking price to 0.9009 (1.1100) Thursday clocking an August 2017 level. The Reserve Bank of Australia lifted their cash rate from 0.10% to 0.35% in a surprise move based on expectations of a 25 point shift which rallied the AUD hard. The central bank will also start decreasing their QE buying program, with growth forecasts being updated from 5.1% to 6.0% for 2022, Governor Lowe saying the economy was in good shape. Looking at the chart we don’t think the cross will get through 0.9000 levels for now with price backing away from the low to 0.9040 this morning.
The current interbank midrate is: NZDAUD 0.9027 AUDNZD 1.1072
The interbank range this week has been: NZDAUD 0.9025- 0.9165 AUDNZD 1.0911- 1.1108