Interest rates in New Zealand are holding with the central bank in Australia expected to this week announce an increase to its rates to 4.75 per cent.

The current official cash rate in New Zealand is three per cent and this differential is expected to increase pressure on the cross currency rate.

See weekly video market update below with IRG BOP's Jonathan York below.

The currency exchange between the countries is wide at this time with a rate of about 0.76, and this is expected to widen further as the gap between interest rates increases.