6:00 PM (NZT) The New Zealand dollar has continued its recent trend of put in a grinding outperformance of the Australian dollar over the last week. As we move towards the RBA monetary policy meeting next week, and the potential 25pt cut to a 4% cash rate in Australia, the crucial NZD resistance level of .7800(1.2820) is likely to come under the micro-scope. As yet the market has not seriously pushed against this level. Consolidation through this level would likely see further “sold NZD” position covering, to accentuate the NZD appreciation, at least in the short term. The RBA meeting and NZ employment figures present the major pieces of focus next week.
 
The current interbank midrate is:                                                            NZDAUD .7773                         AUDNZD 1.2865
                                                               
The interbank range so far this week to date has been:                 NZDAUD .7714 - .7792             AUDNZD  1.2834 – 1.2963