The New Zealand Dollar (NZD), Australian Dollar (AUD) cross continued to bang around in recent ranges this week with a tinge of upside bias with the kiwi. The low being 0.9295 (1.0760) and the high 0.9350 (1.0695) suggests the pair is positioning for directional cues. Aussie CPI y/y came off 7.2% to 6.8% disappointing analysts, adding to the poor mood was a weaker Retail Sales release. Next week’s RBNZ cash rate hike to 5.0%, possibly 5.25% from 4.75% hopefully will give us clues as to where the central bank sees their interest rate cap based on inflation forecasting. We still see upside possible in the kiwi especially if the RBNZ gives a message that they still have work to do to bring down inflation to their 2.0% target.
The current interbank midrate is: NZDAUD 0.9329 AUDNZD 1.0710
The interbank range this week has been: NZDAUD 0.9292- 0.9351 AUDNZD 1.0693- 1.0761