It’s been a slow week for the New Zealand Dollar (NZD), Australian Dollar (AUD) cross with not a lot on the docket. Tuesday’s RBA policy announcement and cash rate was the only notable attraction with the Australian central bank hiking interest rates 25 points to 3.6%. This was negative for the Aussie shifting price from 1.0870 (0.9200) to 1.0700 (0.9345) soon after before reversing back to 1.0800 (0.9260) areas. Further hikes are forecast for the RBA over the coming months to ensure inflation tracks lower to its target band with talk of two more to come. Looking ahead we have key NZ GDP fourth quarter 2022 which is predicted to contract below third quarter’s 2.0%, how far is uncertain but with China “re-opening” their economy- could soften the blow.
The current interbank midrate is: NZDAUD 0.9268 AUDNZD 1.0777
The interbank range this week has been: NZDAUD 0.9181- 0.9346 AUDNZD 1.0699- 1.0892