The New Zealand Dollar (NZD) held its ground surprisingly recovering recent losses against the Australian Dollar (AUD) on its way to a peak at 0.9175 (1.0900). Chinese economic outlook put the Aussie under pressure as well as a less hawkish RBA. The central bank said the rate increase a week ago was finely balanced based on pressures in rising wage growth. Inflation risks are still slanted to the upside with the door open for further hikes. Next week’s Australian CPI y/y will give us more clues on where the cross is headed, anything larger than the current 6.8% may improve the AUD.
The current interbank midrate is: NZDAUD 0.9147 AUDNZD 1.0925
The interbank range this week has been: NZDAUD 0.9048- 0.9170 AUDNZD 1.0904- 1.1051