The New Zealand Dollar (NZD) gained on the British Pound (GBP) into Wednesday to 0.4730 (2.1135) but couldn’t hold here. The RBNZ cut the official cash rate from 5.5% to 5.25%, the first cut in 4 years. A surprise to most in the markets but not us, as we called for a cut in the August meet some time back. More cuts are expected in the October and November central bank meetings, the central bank saying with inflation at 3.3% and picked to dip lower over the coming months, inflation will be back within their 1-3% target zone. The 50% fib zone at 0.4650 (2.1500) may offer relief for the kiwi on the downside, however with prior low at 0.4565 (2.19) may end being retested in the coming weeks.
The current interbank midrate is: NZDGBP 0.4650 GBPNZD 2.1505
The interbank range this week has been: NZDGBP 0.4650- 0.4731 GBPNZD 2.1136- 2.1503