Poor data out of the US midweek has helped the New Zealand Dollar (NZD) to push up from the 0.6150 low against the US Dollar (USD) to clock 0.6250 early this morning. Risk flows returned after China’s decision to take more action from an underperforming economy and concerning housing market situation was well received by markets. The PBOC cut their interest rate from 2.75% to 2.5% in a surprise move sending a strong message to policy makers suggesting they will do whatever it takes. Topside moves may be limited with recent chart moves indicating 0.6280 looks well overbought territory and shifts back to 0.6050 retesting the prior low look possible over the coming days.
The current interbank midrate is: NZDUSD 0.6217
The interbank range this week has been: NZDUSD 0.6155- 0.6249