The New Zealand Dollar (NZD) has struggled over the week against a storming Australian Dollar (AUD), the cross reaching 0.9180 (1.0890) in one way traffic. The RBA decision saw the cash rate stay unchanged at 4.35% while the central bank hasn’t ruled out further rate hikes if price pressures remain elevated and stubborn. NZ GDP for the first quarter of 2024 ending March came in at 0.2% surprising markets after 0.1% was expected. We always thought even 0.1% was to high given recent economic events, but while data has worsened over May and June we expect the second quarter data to send NZ back into a recession. Aussie CPI next week holds our interest on the calendar with predictions this will print just below the current 3.6%.
The current interbank midrate is: NZDAUD 0.9187 AUDNZD 1.087
The interbank range this week has been: NZDAUD 0.9181- 0.9294 AUDNZD 1.0759- 1.0891