A slew of US Data misses’ midweek saw the New Zealand Dollar (NZD) extend last week’s run off 0.6040 to clock 0.6270 yesterday vs the US Dollar (USD). US Home Sales fell to a 2 year low as surging borrowing cost deterred buyers and the Philly Fed Manufacturing Index declined in July -12.3% as manufacturing company orders were cut. Monday’s NZ CPI read pushed higher to 7.3% up from 6.9% in the first quarter and above the forecasted 7.1% predicted taking the NZD briefly lower. The kiwi may continue its upward trend towards 0.6300 areas, the Fibonacci 50% resistance level identified on the chart if US equity indices post gains over the coming days. The Nasdaq is on 6 days winning streak. Looking into next week we have the Fed funds rate announcement predicted to rise from 1.75% to 2.5-2.75%
Exchange Rate:
The current interbank midrate is: NZDUSD 0.6240
The interbank range this week has been: NZDUSD 0.6140- 0.6271