The New Zealand Dollar (NZD) clocked its lowest price of 0.8707 (1.1485) mid last week against the Australian Dollar (AUD) since November 2013. Both RBNZ and RBA central banks come out to play this week with both predicted to raise rates by 50 points to 3.5% and 2.85% respectively. It will be the 8th straight rise for the RBNZ while just the sixth for the RBA. Governor Lowe seems to believe they are close to slowing tightening to 25 point moves in efforts to not choke the economy into recession. We should see the normal volatility around both releases with rhetoric being the key for determining ongoing tightening viewpoints. As we have been saying for week’s – Aussie buyers should consider options.
Current Level: 0.8789 (1.1366)
Resistance: 0.8890 (1.1500)
Support: 0.8695 (1.1250)
Last Weeks Range: 0.8705-0.8837 (1.1315-1.1487)