The cross rate had reached highs of 0.9450, in February, leading into the latest RBNZ Rate Decision. The NZ Central Bank’s ‘dovish’ stance has allowed the cross rate to drift off recent highs, to trade back to 0.9350. The cross rate was softer due to the RBNZ dovish sentiment, but markets will be watching the Australian GDP growth number for direction, set to be released this Wednesday.
Current Level: 1.0670
Resistance: 1.0800
Support: 1.0580
Last Weeks Range: 1.0590- 1.066
The cross rate had reached highs of 0.9450, in February, leading into the latest RBNZ Rate Decision. The NZ Central Bank’s ‘dovish’ stance has allowed the cross rate to drift off recent highs, to trade back to 0.9350. The cross rate was softer due to the RBNZ dovish sentiment, but markets will be watching the Australian GDP growth number for direction, set to be released this Wednesday.
Current Level: 0.9355
Resistance: 0.9450
Support: 0.9300
Last Weeks Range: 0.9330- 0.9440
The NZ Dollar continues to trade around the fallout from the last ‘dovish’ RBNZ Interest Rate Decision. The RBNZ left rates unchanged and held the narrative ‘higher for longer’, but deductions are that the probable next rate move from the Central Bank, will be to cut rates. The currency has been testing 2024 lows, of 0.6050 recently, and may go lower if the
Federal Reserve Chairman Powell continues the hawkish narrative in his appearance before Congress later in the week.
Current Level: 0.6085
Support: 0.6050
Resistance: 0.6150
Last week’s range: 0.6060- 0.6115
The AUD has been faring badly against the USD, battered by the ‘hawkish’ approach to monetary policy by the Fed and the mixed messages emanating from the RBA Governor. Australian inflation has been falling steadily and the latest reading of 3.4% was steady, despite projections of a spike back upwards. The RBA Governor have been all over the shop in recent times, but it will be the grim determination of a ‘hawkish’ Federal Reserve that controls the AUD.
The current interbank midrate is: AUDUSD .6508
The interbank range this week has been: AUDUSD .6484 – .6565
The AUD has tumbled against the GBP for the whole of 2024, falling from highs of 0.5350 in January, to trade around today’s 0.5125. Interest rate differentials drive this price action and the Bank of England appear committed to their tight monetary policy. The UK is in recession but has green-shoots of growth, allowing some leeway for the Bank of England. The AUD has been undermined by less certainty from the Central Bank. Growth and inflation remain key to both currencies, so data will be watched closely in the coming week.
The current interbank midrate is: AUDGBP .5154 GBPAUD 1.9402
The interbank range this week has been: AUDGBP .5129 – 5184 GBPAUD 1.9287 – 1.9490
The AUD/EUR has been weakening all of 2024, from highs in January of just below 0.6200, to testing of the ‘Big Figure’ of 0.6000, to the downside. The inherent weakness of the commodity currency has driven the fall, while the ECB’s reticence to alter tight monetary policy, is a direct result of the fear of resurgent inflation. Germany is now in recession and many other member states are in the same boat, which has aided in the war on inflation, but at some time, the economic pain must be addressed with pressure to lower interest rates. The question is whether the RBA will blink before the ECB?
The current interbank midrate is: AUDEUR .6018 EURAUD 1.6616
The interbank range this week has been: AUDEUR .5993 – .6066 EURAUD 1.6484 – 1.6684
The Bank of England has been very hawkish in their approach to interest rates, holding them at high levels, despite precipitous falls in their inflation levels. This has ensured the strength of the GBP against the NZD, which has weakened from highs of just below 0.5000, to be trading around 0.4800 v the NZD. This downside bias is likely to continue into the near future, as the GBP remains supported by their Central Bank policy.
The current interbank midrate is: NZDGBP .4822 GBPNZD 2.0738
The interbank range this week has been: NZDGBP .4802 – .4898 GBPNZD 2.0416 – 2.0821
The NZD/EUR cross rate has been dropping most of 2024, falling from the January highs of 0.5730, back to around 0.5600. This has been a product of the weakness of the NZD and the ECB holding steady on monetary policy, as inflation continues to fall. French and German CPI inflation numbers have been steadily falling, but fears of supply pressures, have ensured the ECB holds rates higher for longer.
The current interbank midrate is: NZDEUR .5632 EURNZD 1.7755
The interbank range this week has been: NZDEUR .5605 – .5733 EURNZD 1.7441 – 1.7841
The cross rate has reached highs of 0.9450, in the last week or so, leading into the latest RBNZ Rate Decision. The NZ Central Bank’s ‘dovish’ stance has allowed the cross rate to drift off recent highs, to trade around 0.9350. The Australian CPI inflation number, released this week, was in line with expectations. The cross rate was softer due to the RBNZ dovish sentiment, but any ‘hawkish’ stance by the RBA Governor, could see the cross-rate re-test highs.
The current interbank midrate is: NZDAUD .9360 AUDNZD 1.0684
The interbank range this week has been: NZDAUD .9358 – 9457 AUDNZD 1.0574 – 1.0682
The RBNZ left rates unchanged, as expected by markets, this week gone by. The previous CPI inflation reading from NZ, was softer than expected, and this has led to a more ‘dovish’ approach to monetary policy. The NZD tumbled against all currencies, with the prospect of further weakness, as the Fed continues the ‘higher for longer’ mantra.
The current interbank midrate is: NZDUSD .6092
The interbank range this week has been: NZDUSD .6072 – .6194