The Australian Dollar (AUD) has drifted lower over the week against the New Zealand Dollar (NZD) the second week straight coming from 1.0920 (0.9160) to 1.0870 (0.9200) into Friday. CPI y/y for the March quarter came in at 4.0%, down from 4.7% with the largest contributor being Housing costs – rental costs and utilities. The RBNZ reiterated they still have a way to go to achieve their target 1-3% band. Expectations of a return below 3% should happen in the third quarter this year with rate cuts possibly not until the August/October meetings. The kiwi still has a way to go to halt the bear run of late, a breakout through 0.9260 (1.0800) would certainly shift bias back towards the NZD.
The current interbank midrate is: NZDAUD 0.9194 AUDNZD 1.0868
The interbank range this week has been: NZDAUD 0.9158- 0.9208 AUDNZD 1.0859- 1.0919