The New Zealand Dollar (NZD) regained the edge Monday after dropping to 0.9150 (1.0930) Friday against the Australian Dollar (AUD) pushing back to 0.9295 (1.0760) in early morning trading. Australian inflation looks to have peaked in late 2022 with yesterday’s data showing the souring rate of living costs could now be correcting lower. CPI first quarter 2023 came in at 7.0% down from 7.8% from a year ago. The RBA will no doubt be content to leave rates on hold at next week’s meeting. That being said, the consumer confidence index ticked below 80.0 the lowest level since late 2019 highlighting ongoing concerns. With the RBNZ predicted to raise rates to 5.5% again in May following the 50 point hike on April 5th we could see currency/central bank divergence kick in again and a stronger NZD. The 50% retracement Fibonacci resistance at 0.9295 (1.0760) has been hit with upside bias in the AUD over the last couple of hours.
The current interbank midrate is: NZDAUD 0.9263 AUDNZD 1.0791
The interbank range this week has been: NZDAUD 1.0758- 1.0906 AUDNZD 0.9169- 0.9295