The Australian Dollar (AUD) retreated Monday off 1.0760 (0.9295) to 1.0730 (0.9320) early Tuesday as we head into RBA week. The kiwi has been doing well of late post last week’s RBNZ hawkish hold. We don’t expect a hike from the RBA today from 4.35% after the central bank raised it in November. The Aussie could come under selling pressure this week depending on the market mood. A break past 0.9340 (1.0710) and we could see further upside in the NZD, possibly a retest of the long-term mark at 0.9400.
The current interbank midrate is: NZDAUD 0.9307 AUDNZD 1.0736
The interbank range this week has been: NZDAUD 0.9289- 0.9335 AUDNZD 1.0712- 1.0765