FX News

NZD/USD Conversion:

Big Dollar strength this week has shifted the New Zealand Dollar (NZD) off its high of 0.6450 to 0.6240 in early Friday trading reversing all last week’s moves. The US Dollar (USD) has been well bid as mood has been risk averse. The Reserve Bank of New Zealand hiked the Official Cash Rate to 3.0% from 2.5% Thursday as predicted making this the fourth time in a row they have hiked 50 points apiece. The interest rate is now at a 7 year high with Adrian Orr saying the peak could be over 4% by mid next year if rising inflation doesn’t turn lower. Ore said household balance sheets were still healthy, but demand will come out of the market in the coming months as spending slows as labour market demand falls. The Fed minutes confirmed the Fed will remain on their tightening path, but several Fed members are getting nervous that the Fed is going in too hard and raising rates too fast. Solid support on the chart at 0.6220, we expect this should hold.

The current interbank midrate is: NZDUSD 0.6245
The interbank range this week has been: NZDUSD 0.6236- 0.6456

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