On Wednesday, the RBNZ hiked interest rates 50 points to 4.75% as widely predicted with peak expectations of 5.5% marked slightly lower in late 2023. Recent devastation from cyclone Gabrielle could spoil this however as we head into 2024 with a tight labour market and inflation if it stays stubbornly high for longer periods. Softer than expected Aussie jobs data Wednesday meant the AUD was dealt a double hit falling from 1.1050 (0.9050) area to 1.0930 (0.9150) this morning, wages declining 0.8% for the fourth quarter 2022 highlighting proper income pressures on consumers with contrasting high CPI. A fall below 1.0830 (0.9235) would signal a momentum shift, for now the cross sits around the bottom of the recent bull trend.
The current interbank midrate is: NZDAUD 0.9144 AUDNZD 1.0932
The interbank range this week has been: NZDAUD 0.9017- 0.9154 AUDNZD 1.0924- 1.1089