The New Zealand (NZD) has underperformed this week against the Australian Dollar (AUD) falling from Wednesday’s RBNZ rate release from 0.9160 (1.0915) to 0.9060 (1.1040) into Friday. The RBNZ was picked to raise interest rates in May but held, then in July the central bank started to change direction and rhetoric to cutting rates. The August 14 cut from 5.5% to 5.25% was on our radar but not so much on the wider market opinion as to what was predicted hence the NZD sell off. Aussie unemployment improved the AUD yesterday with the change in employed people rising 58,000 a surprise release after only 20,000 was expected. The Unemployment rate came in slightly higher at 4.2% over 4.1% in line with RBA projections and signalling no shift to easing policy any time soon. Overall, the AUD still has an edge, we believe we will be back in the 80’s over the coming couple of weeks.
The current interbank midrate is: NZDAUD 0.9044 AUDNZD 1.1053
The interbank range this week has been: NZDAUD 0.9046- 0.9174 AUDNZD 1.0900- 1.1054