The past two weeks of moves higher by the New Zealand Dollar (NZD) have been erased this week with price falling from 0.4750 (2.0920) to 0.4720 (2.1200) midweek. NZ inflation came in lower than the predicted 4.3% at 4.0% for the March quarter y/y down from 4.7% in the fourth quarter of 2023, the smallest inflation read since June 2021. The RBNZ still need a 1-3% target, data depending- we should be under 3% by the third quarter this year. We don’t expect rate cuts until September, other analysts are saying November. UK CPI also dipped y/y in March from 3.4% to 3.2% mostly from a slowdown in food inflation. The release lent further support for the GBP in line with a little “risk off” developing over the past few hours. The bear channel in play looks to kick on for a while with price looking like it wants to retest 0.4720 (2.1200)
The current interbank midrate is: NZDGBP 0.4743 GBPNZD 2.1083
The interbank range this week has been: NZDGBP 0.4716- 0.4782 GBPNZD 2.0908- 2.1203