The New Zealand Dollar (NZD) has outperformed most main board currencies this week including the Australian Dollar (AUD) the kiwi reversing 4 weeks of declines from 0.8970 (1.1150) to clock 0.9130 (1.0950) this morning. The AUD has been under stress from talk of the RBA cutting possibly in November and poor Chinese manufacturing data. Australian CPI came in at 3.8% bang on expectation y/y in June up from May’s 4.0% y/y. Next week’s RBA cash rate announcement should come and go without fanfare and remain at 4.35% before NZ employment data which is predicted to squeeze higher. We think the cross will close the week around 0.9090 (1.10) levels.
The current interbank midrate is: NZDAUD 0.9148 AUDNZD 1.0925
The interbank range this week has been: NZDAUD 0.8970- 0.9171 AUDNZD 1.0903-1.1148