NZ CPI grew to the highest level in over 30 years yesterday when it jumped year on year to 6.9% slightly lower than the predicted 7.1%. For the quarter this rise of 1.8% and much lower than it should have been – god only knows where some of these statistical numbers are calculated from. The New Zealand Dollar (NZD) sat just around the 0.6750 area over the release then began to underperform into late Thursday sessions. Risk conditions and equities are down at weekly low’s overnight, the NASDAQ falling over 2% taking the fragile NZD to 0.6730 this morning, the biggest single session fall in months. US Fed’s Daly was on the wires talking up several 50 point rate hikes which spooked markets considering first quarter earnings reports forecasts could be soft. A retest of the 7 week low at 0.6710 looks possible heading into the weekly close. Looking ahead we have advanced US GDP q/q on the radar.
The current interbank midrate is: NZDUSD 0.6724
The interbank range this week has been: NZDUSD 0.6714- 0.6812