Tuesday’s RBA interest rate remained unchanged at 4.35% with the RBA a little less hawkish than we were expecting. Prices in the Australian Dollar (AUD), New Zealand Dollar (NZD) ticked higher from 0.9075 (1.1020) to reach 0.9132 (1.0950) early Friday. The RBA will leave interest rates on hold until at least year end with inflation forecasted to be around 2.8% late 2025. If we compare this to NZ inflation forecast which are falling faster its clear to see divergence starting to affect the NZD/AUD. We will get a closer look next week at NZ Inflation Expectations q/q. We are not convinced just yet we have seen the low at 0.9065 (1.1030) in the rear-view mirror, certainly if price breaks 0.9140 (1.0940) we could see further rises for the kiwi.
The current interbank midrate is: NZDAUD 0.9121 AUDNZD 1.0959
The interbank range this week has been: NZDAUD 0.9067- 0.9134 AUDNZD 1.0947- 1.1029