The New Zealand Dollar (NZD), Australian Dollar (AUD) cross has consolidated around the 0.8960 (1.1160) area after travelling from 0.8810 (1.1350) last week. Diverging central bank forecasts have improved the kiwi in the last two weeks and could continue to do so for a while yet. NZ third quarter CPI released at 2.2% well up on expectations of 1.50% pushing the kiwi all-round the park before settling around – 0.8970 (1.1160). Y/Y this is 7.2% down from 7.3% with consensus at 6.6% clearly this is not what the govt was looking for. This will no doubt push up predictions of cash rates.
Current Level: 0.8982 (1.1124)
Resistance: 0.9010 (1.1230)
Support: 0.8905 (1.1100)
Last Weeks Range: 0.8807-0.9009 (1.1100-1.1354)