The New Zealand Dollar (NZD), Australian Dollar (AUD) trades at a 10-week low this morning around 0.9125 levels. Yesterday’s Aussie CPI release took price from 0.9235 (1.0830) to 0.9125 (1.0960) as fourth quarter inflation published much higher than markets were anticipating. The Q result 1.9% vs 1.6% pushed the year-on-year figure to 7.8% off 7.3% boosted by rising costs in food, fuel and new dwelling construction. NZ last quarter CPI also printed, but came in moderately above expectations not causing a fuss. The year-on-year number remains at an elevated 7.2%. Interestingly this is down on the 7.5% inflation the RBNZ predicted in November which could mean a less aggressive approach at the 22nd Feb meeting. We may see the current momentum stall out towards 0.9090 (1.1000) as heavy support is pictured on the chart. Looking ahead we have NZ employment numbers Wednesday.
The current interbank midrate is: NZDAUD 0.9115 AUDNZD 1.0956
The interbank range this week has been: NZDAUD 0.9121- 0.9322 AUDNZD 1.0727- 1.0963