Fibonacci support held mid-week in the Australian Dollar (AUD), New Zealand Dollar (NZD) pair at 0.9160 (1.0920) as we predicted with price moving to the upside to 0.9230 (1.0834). Aussie inflation data printed Wednesday weakening the AUD as CPI in Australia dipped to 5.4% in the 12 months to June compared to 5.5% in the 12 months to May, quarterly the rate has moderated to 6.0% ending June from 7.0%, lower than 6.20% consensus. Looking ahead we have the RBA cash rate announcement Tuesday which should deliver a rise from 4.10% to 4.35%. Topside moves look overbought with price starting to reverse, we expect the 0.9200 (1.0870) to retest prior to the weekly close.
The current interbank midrate is: NZDAUD 0.9216 AUDNZD 1.0843
The interbank range this week has been: NZDAUD 0.9152- 0.9232 AUDNZD 1.0826- 1.0926