Another week another new low in the New Zealand Dollar (NZD) dropping to 0.5955 as I write against the US Dollar (USD). This is an early May 2020 level set as the kiwi was recovering off 0.5530 style lows in line with the start of the covid pandemic in early 2020. This week’s NZ second quarter GDP surprised markets printing much higher than the 1.0% predicted at 1.7% rebounding hard off first quarter’s -0.2% from improved consumer spending and the opening of tourism. Reports suggests a cautionary approach heading into the late months of 2022 and early 2023 with “real” incomes eroding which could undermine growth forecasts. Next week’s key standout is the Fed policy and rate announcement with expectations the Fed will hike 75 points to 3.25%. Long range support in the pair is 0.5680 – there is not a lot fundamentally which could return the kiwi higher.
The current interbank midrate is: NZDUSD 0.5967
The interbank range this week has been: NZDUSD 0.5965- 0.6160