New Zealand’s GDP came in softer than predicted, contracting -0.1% for the first quarter 2023 to go with the -0.6% in the fourth quarter of 2022 pushing the country into a formal recession. Recent weather and soaring interest rates have taken a toll on the consumer. Signs are the economy could be in for several poor quarters increasing the likelihood of the RBNZ cutting rates. At the moment the central bank are not predicted to start cutting until mid-2024, we expect this to be reviewed formally over the coming weeks. Aussie jobs data came in hot with the unemployment rate dropping from 3.7% to 3.6% suggesting the RBA could be eying up further tightening in the coming months. A close below the key support at 0.9000 (1.1110) over the next few days would give guidance for further weakness in the NZD.
The current interbank midrate is: NZDAUD 0.9062 AUDNZD 1.1030
The interbank range this week has been: NZDAUD 0.9052- 0.9148 AUDNZD 1.0931- 1.1047