The New Zealand Dollar (NZD), Australian Dollar (AUD) cross has bounced off the key 50% Fibonacci levels at 0.9270 (1.0785) over the past hour, this being the high at 0.9400 (1.0630) and the recent low at 0.9140 (1.0940) suggesting the NZD may be a tad overbought. It wouldn’t surprise us to see prices drift lower to around 0.9215 (1.0850) at the weekly close. The Aussie has struggled all week post the RBA cash rate announcement, the central bank hiking interest rates to 4.35% from 4.10% as predicted but the surprise came when we saw the AUD sell off. Perhaps this was caused by weaker metal prices and a softer Chinese CPI data read?… but strange, nonetheless. Governor Bullock suggested she wouldn’t hesitate to hike again if stubborn inflation remained.
The current interbank midrate is: NZDAUD 0.9256 AUDNZD 1.0797
The interbank range this week has been: NZDAUD 0.9178- 0.9274 AUDNZD 1.0782- 1.0895