The New Zealand Dollar (NZD), Australian Dollar (AUD) cross continues to consolidate around the recent lows at 0.9050 (1.1050) areas with the Aussie slightly edging out the kiwi this week. The physiological 0.9000 big figure support should hold for a while longer. China’s iron ore demand is expected to surge once Chinese industry is back online post covid lockdowns which in turn could benefit the AUD over the next few months while a backlog of manufacturing orders are filled. Minutes from the RBA (3rd May) confirms the RBA is more open to a 40-point hike in rates over the talked about 15-point move, but a 25 point move in the midst of an election campaign is the likely scenario (6 June). Federal elections are being held this weekend with labour leading the polls. Aussie jobs data tomorrow and next week’s RBNZ rate announcement and statement is in view with the RBNZ expected to hike interest rates to 2.0% from 1.5%.
The current interbank midrate is: NZDAUD 0.9046 AUDNZD 1.1044
The interbank range this week has been: NZDAUD 0.9026- 0.9090 AUDNZD 1.1001- 1.1079