The New Zealand Dollar (NZD) finally broke below 0.9000 (1.1110) this morning against the Australian Dollar (AUD), it’s been a long time coming as we forecast this to happen weeks ago. The cross has been sitting between a range of 0.9090 (1.1000) and 0.9020 (1.1090) for 7 weeks straight so a move outside “status quo” has been welcomed. A retest of 0.8970 (1.1150) on the chart looks a possibility the October 2022 low. Looking ahead we have the RBNZ Wednesday with markets predicting a drop to the cash rate of 50 points with a decent chance of a 75-point cut to 4.00%. We are in the 75-point camp.
The current interbank midrate is: NZDAUD 0.8991 AUDNZD 1.1010
The interbank range this week has been: NZDAUD 0.8950- 0.9090 AUDNZD 1.1000- 1.1172