It’s been all go in the New Zealand Dollar (NZD), Australian Dollar (AUD) cross this week with volatility abundant. The Aussie fell Monday posting 0.9215 (1.0850) before bouncing back to 0.9090 (1.1000) Tuesday around the RBA cash rate release. The central bank deciding it not time just yet to cut rates, Governor Lowe more hawkish than markets were expected, the RBA now expects inflation to stay above 3.0% for most of 2024 before dropping to their 2.5% target in 2026. NZ Employment data published above expectations Wednesday at 0.4% for the last quarter with the unemployment rate coming in at 4.6% vs 4.7% in June, higher than May’s 4.3% sending the kiwi back to 0.9115 (1.0970). We think prospects for the medium term In the cross look to be in the 80’s.
The current interbank midrate is: NZDAUD 0.9118 AUDNZD 1.0961
The interbank range this week has been: NZDAUD 0.9085- 0.9222 AUDNZD 1.0843- 1.1006