The New Zealand Dollar (NZD) closed the week out around 0.9270 (1.0790) against the Australian Dollar (AUD) extending losses throughout the week from 0.9375 (1.0670) numbers. Data out in the form of NZ GDP q/q ending September wasn’t so NZD supportive after printing at -0.3% vs 0.2% expectations lowering the kiwi. Fears of another NZ recession have crept back into conversations with questions being raised on whether the RBNZ have raised too far with 4th quarter growth predictions to worsen. The Aussie was further boosted by Aussie unemployment numbers jumping to 3.9% a June 2022 high despite jobs numbers coming in hot at 61,500 compared to 11,000 predictions. What this means is the central bank will keep rates at 4.25% for longer with the caveat being incoming jobs reports and inflation forecasts. On the chart we saw a small pullback to 0.9295 (1.0760) in the kiwi to start the week but this was short lived with price back around 0.9260 (1.0800) this morning. With no proper data on the docket this week we should see the cross bounce around the 0.9200 (1.0870) – 0.9300 (1.0750) zone.
The current interbank midrate is: NZDAUD 0.9262 AUDNZD 1.0784
The interbank range this week has been: NZDAUD 0.9260- 0.9295 AUDNZD 1.0758- 1.0798