The current interbank midrate is: NZDAUD 0.9175 AUDNZD 1.0893
The interbank range this week has been: NZDAUD 0.9133- 0.9197 AUDNZD 1.0872- 1.0949
AUD/GBP Transfer
The Australian Dollar (AUD) punched through 0.5195 (1.9250) resistance in overnight trading vs the British Pound (GBP) on its way to post 0.5225 (1.9135) an 11-week high. A short week meant we have seen little meaningful data published in the cross. Last week’s Aussie CPI release saw a pause to inflationary pressures, the RBA not to happy with the result. While the move from the central bank is likely to be a cut this won’t happen for some time. Wage growth which is closely corelated with inflation which sits at 4.2% needs to start tracking higher. We need to see a break back below 0.5200 (1.9250) to confirm further downside in the pair.
The current interbank midrate is: AUDGBP 0.5206 GBPAUD 1.9208
The interbank range this week has been: AUDGBP 0.5161- 0.5226 GBPAUD 1.9133- 1.9375
NZD/GBP Transfer
The New Zealand Dollar (NZD) has been one of the strongest currencies over the week, rebounding off the weekly close at 0.4740 (2.1090) it has regained losses to reach 0.4770 (2.0960) against the British Pound (GBP). We have no news published to report on this week with all eyes on next week’s RBNZ meeting with no change predicted yet from 5.50%. Trend in the pair is still to the downside with price locked into a bear channel from the high at 0.4900 (2.0400) from late February. A move above prior resistance at 0.4780 (2.0910) could highlight a momentum shift for the kiwi.
The current interbank midrate is: NZDGBP 0.4764 GBPNZD 2.0990
The interbank range this week has been: NZDGBP 0.4730- 0.4775 GBPNZD 2.0942- 2.1138
NZD/USD Transfer
The New Zealand Dollar (NZD) started the week off in familiar form falling further to 0.5940 off the bat against the US Dollar (USD) giving thought, it was going to be another long week of declines. However, the kiwi reversed on a dime pushing up back into the early 60’s, reaching 0.6045 in late morning US trading as risk currencies were back in favour. Surging commodities and a rebound in US equities have helped, the kiwi shrugging off concerns also of a downbeat RBNZ at next week’s central bank meeting. No change is predicted from 5.5% but we could see discussion of a potential cut at the May 22 meeting. Buyers of USD should consider 0.6000.
The current interbank midrate is: NZDUSD 0.6024
The interbank range this week has been: NZDUSD 0.5938- 0.6045
NZD/AUD Transfer
The New Zealand Dollar (NZD), Australian Dollar (AUD) has held around 0.9150 over the past couple of days, the kiwi looking generally sad as it has declined further over the week from 0.9191 (1.0880) , the 6th week straight. Precious metal prices have boosted the AUD this week, especially copper. Commodity buyers seem more concerned about inflation risk than growth which should keep commodity prices buoyant supporting the AUD. Next week’s RBNZ meeting comes into focus with no shift from 5.5% expected. An upbeat RBNZ governor could send the kiwi lower.
The current interbank midrate is: NZDAUD 0.9144 AUDNZD 1.0923
The interbank range this week has been: NZDAUD 0.9128- 0.9272 AUDNZD 1.0784- 1.0955
AUD/GBP Transfer
The Australian Dollar (AUD) pushed past the 50-day moving average mid last week signalling it could extend higher against the British Pound (GBP). Posting up 0.5195 (1.9250) a fresh 4 week high the AUD did well to hold around here before falling back after the RBA Financial Stability Review published bringing back some weakness to 0.5160 (1.9370). This week’s action has been slow with moves pivoting around 0.5175 (1.9320) leading up to today’s CPI y/y release. Forecast is for a rise from 3.4% to 3.5% and more talk around “higher for longer” expected.
The current interbank midrate is: AUDGBP 0.5174 GBPAUD 1.9327
The interbank range this week has been: AUDGBP 0.5167- 0.5187 GBPAUD 1.9276- 1.9353
NZD/GBP Transfer
The New Zealand Dollar (NZD) hasn’t been able to regain an edge against the British Pound (GBP) this week after dropping in value last week to 0.4760 (2.10). Prices in the cross have progressed through to 0.4755 (2.1035) into Tuesday trading just shy of last week’s low and September 2023 levels. No data publishing this week, last week’s poor NZ growth data should keep the kiwi on the back foot with the Bank of England (BoE) unlikely to lower rates any time soon.
The current interbank midrate is: NZDGBP 0.4753 GBPNZD 2.1039
The interbank range this week has been: NZDGBP 0.4746- 0.4768 GBPNZD 2.0972- 2.1068
NZD/USD Transfer
The New Zealand Dollar (NZD) slipped below the key 0.6000 level against the US Dollar (USD) late last week closing around the 0.5995 mark. Last week’s gloomy growth release is taking a toll on the kiwi, adding in some less than dovish speak from the Federal Reserve and the NZD has and could continue to struggle. Overnight we saw a rebound to 0.6030 but declined back to 0.6000 as I wrote. The importance of having orders in the market, this is a good example. Over the next day or so we will get a read on how markets are perceiving the strength in the NZD. The longer the cross trades around 0.6000 the harder the break to the downside could be.
The current interbank midrate is: NZDUSD 0.6002
The interbank range this week has been: NZDUSD 0.5982- 0.6030
NZD/AUD Transfer
The Australian Dollar (AUD) continues to go from strength to strength against the New Zealand Dollar (NZD) with the cross reaching 0.9175 (1.0900) early this morning a fresh 3rd of November low. Pricing around 0.9140 (1.0940) is the next stop in the pair for support. Through this zone and we are targeting 0.9075 (1.1020) the lowest daily close since October 2022. On the topside any push back through 0.9245 (1.0820) would indicate a momentum shift. Australian CPI y/y for February prints later today and could strengthen the Aussie further if the data is higher than the 3.5% forecast.
The current interbank midrate is: NZDAUD 0.9184 AUDNZD 1.0883
The interbank range this week has been: NZDAUD 0.9173- 0.9231 AUDNZD 1.0832- 1.0901
AUD/GBP Transfer
The English Pound (GBP) made ground early week to 1.9500 (0.5130) against the Australian Dollar (AUD), however the Aussie fought back hard flying into Friday around 0.5195 (1.9250) areas. The RBA held rates at 4.35% as expected, dropping the value of the AUD due to a dovish stance. UK inflation printed at 3.4% vs 3.5% y/y for March supporting theory of pending cuts in May/June from the central bank. The Bank of England held rates overnight at 5.25% with an 8-1 vote with just one member preferring to cut by 0.25%. A retest of the 0.5210 (1.9200) area could imply further upside for the AUD in the coming days.
The current interbank midrate is: AUDGBP 0.5187 GBPAUD 1.9278
The interbank range this week has been: AUDGBP 0.5126- 0.5196 GBPAUD 1.9245- 1.9506