FX News

Risk assets this week have dragged on the New Zealand Dollar (NZD) the currency falling back to 0.6115 against the US Dollar (USD) on renewed greenback demand. Central banks around the globe are starting to talk more about easing policy and dropping rates sooner rather than later. The recent rhetoric around “higher for longer” is now being questioned with the first rate cut now predicted by the RBNZ by August 2024. Non-Farm Payroll prints tonight expected to come in light with unemployment to tick higher from 3.9%. Technically the kiwi looks well capped at 0.6220 and should continue to the downside. A December close below 0.6050 should signal further bearish price moves.

The current interbank midrate is: NZDUSD 0.6162

The interbank range this week has been: NZDUSD 0.6113- 0.6222

The New Zealand Dollar (NZD) extended moves north into Friday against the Australian Dollar (AUD) clocking 0.9390 (1.0650) an 8-week high. The RBA left rates unchanged at 4.35% Tuesday as widely predicted after the central bank hiked in November. New governor Michelle Bullock saying progress to bring down inflation to their target 2-3% band has been slower than forecast. The RBA have no meeting planned in January; we would not expect a further hike at February’s meeting if 4th quarter inflation prints considerably lower than the current 5.4% in late January. Prices in the pair are back around the 0.9345 (1.0700) zone with a little Aussie support in play.

The current interbank midrate is: NZDAUD 0.9339 AUDNZD 1.0699

The interbank range this week has been: NZDAUD 0.9287- 0.9384 AUDNZD 1.0656- 1.0767

The New Zealand Dollar (NZD) reached the lofty heights of 0.6210 to close out the week against the US Dollar (USD) the highest it’s been since late July. It’s been an incredible run through 0.6000 recently in a perfect storm with massive flows back into the kiwi. A hawkish RBNZ last week helped when the central bank signalled they would keep interest rates higher for a longer period. ANZ consumer confidence rose 3.8 points in November to 91.9- the highest level since January 2022. We have no local data publishing on this week’s docket, just US Non-Farm Payroll Friday, expected to come in poor with unemployment rising from 3.9%. The kiwi could be a little overbought- we see the NZD drifting lower over the coming days.

The current interbank midrate is: NZDUSD 0.6161

The interbank range this week has been: NZDUSD 0.6149- 0.6221

The Australian Dollar (AUD) retreated Monday off 1.0760 (0.9295) to 1.0730 (0.9320) early Tuesday as we head into RBA week. The kiwi has been doing well of late post last week’s RBNZ hawkish hold. We don’t expect a hike from the RBA today from 4.35% after the central bank raised it in November. The Aussie could come under selling pressure this week depending on the market mood. A break past 0.9340 (1.0710) and we could see further upside in the NZD, possibly a retest of the long-term mark at 0.9400.

The current interbank midrate is: NZDAUD 0.9307 AUDNZD 1.0736

The interbank range this week has been: NZDAUD 0.9289- 0.9335 AUDNZD 1.0712- 1.0765