The New Zealand Dollar (NZD) continues to extend moves higher against the Australian Dollar (AUD) reaching 0.9330 (1.0720) in Thursday trading. Friday prices sit just off this around 0.9305 (1.0750) as I write. Wednesday’s Australian GDP came in lower at 0.1% compared to 0.2% expected surprising markets, the AUD slid further over the news. Governor Bullock making earlier comments suggesting if growth was lower the RBA would consider cutting interest rates. However, she also said post release that if inflation remained sticky the RBA could hike interest rates again if needed. It’s also worth noting that with a slide in iron ore prices and less of a demand in Chinese steel demand of late this has played a part in the weaker AUD. Next week will be quiet on the data front with just Australian unemployment numbers releasing.
The current interbank midrate is: NZDAUD 0.9286 AUDNZD 1.0762
The interbank range this week has been: NZDAUD 0.9232- 0.9325 AUDNZD 1.0723- 1.0831