The New Zealand Dollar (NZD) extended last week’s moves on the Euro (EUR) to 0.5990 (1.6690) midweek as data supported the kiwi and weakened the Euro across the board. Headline Eurozone inflation grew again in October to 10.7% year on year revised up from 9.9% in September with energy prices the main issue along with rising food costs. Negative growth is predicted for fourth quarter 2022 and first quarter 2023 set to drop the Eurozone into recession, however how deep this recession goes lies with developments in the energy sector- a worry with winter on the horizon. NZ Employment numbers came in better than expected with a 1.3% increase in the number of working people, this remaining at a record low. Labour shortages are contributing to high inflation. We think the kiwi may push higher into the close.
The current interbank midrate is: NZDEUR 0.5917 EURNZD 1.6900
The interbank range this week has been: NZDEUR 0.5823- 0.5992 EURNZD 1.6688- 1.7173