The actions of the RBNZ, while the corresponding inverse was true, from the RBA. The RBA has seen inflation persist and held the line, holding interest rates ‘higher for longer’. This has ensured that the AUD has remained firmer, despite headwinds, from a relentlessly stronger reserve currency. The closing of the interest rate differential margin has driven the cross rates lower. This is likely to continue, assuming the RBA holds the line on interest rates, as indicated. The cross was driven back to 0.8900, by August, as the dovish RBNZ monetary policy became apparent. It has recovered to above 0.9000, but the downside pressures remain.
The current interbank midrate is: NZDEUR 0.5591 EURNZD 1.7885
The interbank range this week has been: NZDEUR 0.5550- 0.5608 EURNZD 1.7831- 1.8016