The Australian Dollar (AUD) has bounced back off 0.9090 (1.10) this week against the New Zealand Dollar (NZD) reaching 0.8950 (1.1170) late Wednesday. Yesterday’s Aussie CPI release gave the Aussie a boost coming in much higher than predicted at 7.3% y/y off 6.1%- q/q 1.80% after 1.6% was forecast. This is a whopper release, not unpredictable given the latest set of Aussie date releases. From here we look ahead to Tuesday’s RBA rate release and policy statement with some analysts suggesting the RBA will hike rates another 0.5% by the end of 2022 with another meeting in early December to consider. We see the cross dropping to 0.8900 (1.1235) levels over the next few days.
Current Level: 0.8972 (1.1135)
Resistance: 0.9100 (1.1400)
Support: 0.8770 (1.0990)
Last Weeks Range: 0.8938-0.9100 (1.0988-1.1187)