The recovery in the NZD/AUD cross rate has surprised many, considering the positions of the respective Central Banks. The RBNZ has already began to cut interest rates, with more to come, while the RBA has promised to keep rates at elevated levels, to combat stubborn inflation. This should widen interest rate differentials, pushing the cross lower, but the strong NZ economic data has defied logic. The cross reached 0.9250, but has slipped back to trade towards 0.9150, which is more in line with expectations.
Current Level: 0.9165
Resistance: 0.9300
Support: 0.9100
Last Weeks Range: 0.9160 – 0.9263