FX News

NZD/EUR Transfer:

The New Zealand Dollar (NZD) made solid attempts this week to recover months of losses against the Euro (EUR) trading up to 0.5840 (1.7130) Monday and 0.5860 (1.7070) post Wednesday’s RBNZ announcement but has failed to push on with the long term bear trend back in play- the cross at 0.5770 (1.7320) in early Friday as equity markets turn red on the day. The RBNZ raised their interest rate to 3.5% from 3.0% the 5th straight occasion the central bank has hiked in this tightening cycle. Most market makers still predict the RBNZ to keep rising above 4.0%, possibly reaching 4.5% before the government contemplates inflation is beaten. Orr said, domestic spending remained strong and employment levels are high despite house prices continuing to decline. The Euro may continue to struggle in the near term as EU officials call for a joint borrowing plan to combat the eurozone energy crisis.

The current interbank midrate is: NZDEUR 0.5781 EURNZD 1.7298
The interbank range this week has been: NZDEUR 0.5715- 0.5858 EURNZD 1.7069- 1.7495

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