The New Zealand Dollar (NZD) run against the Euro (EUR) from last week’s low of 0.5906 (1.6930) continued this week with the kiwi posting a fresh high of 0.6130 (1.6320) an early May high. The Euro pushed back early today on risk aversion to 1.6410 despite German and Eurozone economic sentiment releasing dire. German CPI printed at 0.1% for June as expected, y/y (prelim) inflation prints at the end of the month and may reflect further softening in prices from the current 7.6%. The ECB are predicted to raise their interest rate over the coming months to a peak of 2.0% in March next year. Buying EUR above 0.6000 looks attractive.
The current interbank midrate is: NZDEUR 0.6098 EURNZD 1.6398
The interbank range this week has been: NZDEUR 0.6062- 0.6129 EURNZD 1.6314- 1.6494