The Australian Dollar (AUD) recovered off 1.0740 (0.9310) areas early week to take back losses against the New Zealand Dollar (NZD) with price reaching 1.0900 (0.9175) this morning. NZ CPI came in at 6.0% after 5.9% was predicted, down from May’s 6.7%, the lowest read since the last quarter of 2021. However the release only helped the kiwi momentarily with Aussie momentum restored post Australian Job’s data printing. The unemployment rate stayed unchanged at 3.5%- the lowest level in nearly 50 years. The participation rate has also been extremely good over the last few months at 66.8 in June, just 0.1% lower from the May peak. The chances of an RBA hike now at the next policy meeting on 1 August is around 20%. Next week’s Australian CPI y/y data will capture attention, anything north of 6.7% should guarantee further buying in the AUD.
The current interbank midrate is: NZDAUD 0.9194 AUDNZD 1.0873
The interbank range this week has been: NZDAUD 0.9175- 0.9326 AUDNZD 1.0722- 1.0899