Unbelievable scenes in currency markets have seen unpredictable rises in risk currencies of late as well as risk products generally such as commodities. How is this possible with global risks and sentiment firmly aligned to the downside. The New Zealand Dollar (NZD) keeps posting gains, up at 0.6800 against the US Dollar (USD) Friday. It was only 4 weeks ago when the kiwi was staring down the barrel of crashing through 0.6500. Certainly the currency looks like it wants to build on recent form with the upward trajectory and positive tone. Fed chairman Powell supports a 0.25% rise to interest rates later this month. The Fed also expected to start shrinking its 9T balance sheet and support for the economy amid high inflation. The Fed chair also commenting on the Russian war on Ukraine has added uncertainty to the outlook. New applications for unemployment in the US edged lower Thursday remaining at record lows as the labour market hangs tight following on from a marked decline in covid numbers. Despite tensions on the Ukraine/Russian border hopes of a ceasefire have and should continue to support a rising NZD
Exchange Rates
The current interbank midrate is: NZDUSD 0.6797
The interbank range this week has been: NZDUSD 0.6670- 0.6809