The divergence between the RBA and the RBNZ is becoming evident as the New Zealand Dollar (NZD) continues to rally off the back of varying tones. It’s been 5 weeks straight the kiwi has outperformed. The RBA raised their cash rate 0.25% to 2.85% as planned with the central bank saying future rate increases will be determined by incoming intel. The RBA’s outlook for global growth has been revised lower to 3.0% over 2023 and 1.5% for 2023 and 2024. Inflation is now predicted to peak at around 8.0% at year end and slowly drift lower over 2023. NZ Employment numbers came in better than expected with a 1.3% increase in the number of people working- near the record low with labour shortages contributing to high inflation. NZ Unemployment was slightly higher at 3.3% from 3.2%. We expect momentum to continue for the kiwi.
The current interbank midrate is: NZDAUD 0.9170 AUDNZD 1.0896
The interbank range this week has been: NZDAUD 0.9046- 0.9214 AUDNZD 1.0852- 1.1054