FX News

NZD/USD Conversion:

What goes down must come up. The New Zealand Dollar (NZD) recovered midweek off 0.6200 levels against the US Dollar (USD) the May 2020 low, posting 0.6395 at the close of NY this morning. NZ GDP for the March 2022 quarter was poor coming in at -0.2% instead of the expected 0.3%. This follows on from the December 3.0% confirming the economy is contracting quickly. A negative result in the second quarter will firmly place the economy in recession. The Federal Reserve raised their cash price 75 points Thursday to 1.75% pulling down bond treasury yields putting the greenback under pressure. Powell confirming the next hike in July may only be a 50 point move higher instead of the prices in 75 points also contributed to the selloff in the big dollar. Overall pressure in the cross remains to the downside all things considered. The fib 50% retracement from the recent high and low signals prices could struggle to push above 0.6400, buyers of USD should consider, especially given this Monday we were pricing under 0.6200

The current interbank midrate is: NZDUSD 0.6341
The interbank range this week has been: NZDUSD 0.6192- 0.6395

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