The New Zealand Dollar Reached 0.5813 midweek against the US Dollar (USD) before falling back at the Reserve Bank of New Zealand cash rate Release. The RBNZ raised their key interest rate to 3.5% Wednesday from 3.0% the fifth straight time the central bank has hiked in this tightening cycle. Inflationary pressures continue to undermine the economy. Most market makers still predict the RBNZ to keep rising above 4.0%, possibly topping out at 4.5% before the govt believes inflation has been defeated. These hikes are certainly in line with other central banks policy despite growing recession prospects, all except the RBA who this week announced a slowing pace. Orr said, domestic spending remained resilient and employment levels are high despite house prices continuing to decline. US Non-Farm Payroll prints tonight and is predicted to be a bumper release giving the kiwi a boost into the close.
The current interbank midrate is: NZDUSD 0.5658
The interbank range this week has been: NZDUSD 0.5596- 0.5812