Fickle markets over the last few days of trading has proved again that anything can and will happen in currency markets. As the New Zealand Dollar (NZD) came off 0.6795 midweek pushing higher to early Friday prices around 0.6870 we pondered why. US Equity markets are down over 0.50% overnight as well as European stocks 5-7%, poor risk sentiment should have signalled underperformance from the NZD- not the case. The US Fed will most likely dial back its tightening policy this year as it struggles to come to terms with rising inflation and the economic effects of the Russian-Ukraine war. Cracks in world globalisation could last a long time as US and western allies ditch Russian trade agreements, certainly the scaling back of crude, coal and gas could have long huge effects. NZD looks in the mood to track higher into the weekly close.
The current interbank midrate is: NZDUSD 0.6869
The interbank range this week has been: NZDUSD 0.6795- 0.6924