Market Overview

• The resurgent USD remains the dominating force in currencies this week with a sharp repricing of Federal Reserve expectations after last weeks Fed meeting.
• Australian Unemployment Rate unchanged at 4.4% in May keeping chances alive for RBA rate rises.
• The Strait of Hormuz is still considered fragile at the moment with the shipping lane "mostly" open, ships are avoiding the Iran waters due to ongoing security concerns.
• Federal Reserve pushes back achieving 2.0% inflation until 2028 with CPI moderating around 3.5% this year and unemployment expected to be around 4.0% also in 2028.
• Crude prices settle around the 72.00 mark below key 80.00 targets.
• Australian CPI prints at 4.0% y/y down off the 4.2% in April.
• The US Dollar (USD) has been the best performing currency this week on the main board while the Japanese Yen (JPY) is the worst performer, the 5th week running.

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NZD/USD pair this week:

The NZD has remained under pressure this week diving to 0.5640 against the USD.

The New Zealand Dollar (NZD) has remained under pressure this week diving to 0.5640 against the US Dollar (USD) a fresh 2026 low. At the 0.5600 level technically, we see long term base support holding but the cross certainly isn't well supported on setbacks. US Final GDP q/q came in at 2.1% for quarter 1 ending March confirming the US economy is on a good footing. Inflation remains high, well above the 2% target but is predicted to ease late this year with rate rises needing to be carefully calculated. As the kiwi seems a little oversold, we think we may see a reversal higher develop.

The current interbank midrate is: NZDUSD 0.5628
The interbank range this week has been: NZDUSD 0.5625- 0.5740

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Click here for NZDUSD charts

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NZD/AUD pair this week:

The kiwi will be doing well to avoid a retest of 0.8145 (1.2280).

The New Zealand Dollar (NZD) kicked back off Tuesday's 0.8155 (1.2260) to post 0.8205 (1.2190) midweek against the Australian Dollar (AUD) before losing momentum into Friday to 0.8185 (1.2220). It's been all about Australian CPI and jobs numbers with CPI printing lower at 4.0% vs 4.2% predicted and unemployment dropping slightly to 4.4% affecting moves. The kiwi will be doing well to avoid a retest of 0.8145 (1.2280) over the coming few days.

The current interbank midrate is: NZDAUD 0.8184 AUDNZD 1.2217
The interbank range this week has been: NZDAUD 0.8158- 0.82002 AUDNZD 1.2191- 1.2257

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Click here for NZDAUD charts

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AUD/USD pair this week:

A fall through key 0.6830 could signal further downside momentum.

Sellers remain in control of the Australian Dollar (AUD) this week extending last week's losses against the US Dollar (USD) to 0.6900 figure. The Aussie dropping hard through key 0.7000 Tuesday as the RBA pauses tightening. Australian CPI came in at 4.0% y/y down from April's 4.2% raising questions around if the RBA will be raising rates. However Aussie job numbers followed with a small drop to 4.4%, punters suggesting this is not enough putting pressure on the central bank to hike. On the chart, a fall through key 0.6830 could signal further downside momentum.

The current interbank midrate is: AUDUSD 0.6876
The interbank range this week has been: AUDUSD 0.6874- 0.7018

Click here for AUDUSD charts

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The Direct FX app has been updated to include currency charts and the highs/lows for the past 24 hours. Along with our regular market commentary, the Direct FX app also has live indicative market mid rates and a currency conversion calculator. Use the relevant link below to take you directly to the version for you, or simply search for it in the App store / Play store.

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