The New Zealand Dollar (NZD) extended its weekly long rally against the Australian Dollar (AUD) pushing into new heights at 0.9460 (1.0570) as I write. Stiff resistance at 0.9440 (1.0590) came and went, surprising most, breaking clear into a 2024 high. Does this all mean we could see a hike at next week’s RBNZ meeting? Is the market positioning for this event, evidence of the overwhelming support for the NZD?. Also on the docket next week is Australia CPI y/y with early predictions we could see a marked drop from the current 3.4%. It’s highly possible the kiwi has been overbought as it nears Dec 2022 highs, we look for a rebound.
The current interbank midrate is: NZDAUD 0.9442 AUDNZD 1.0581
The interbank range this week has been: NZDAUD 0.9376- 0.9461 AUDNZD 1.0569- 1.0665