FX News

NZD/USD Transfer

The New Zealand Dollar (NZD) shrugged off last week’s losses pushing back above 0.6000 posting a new high midweek of 0.6080 against the US Dollar (USD). This little run up wasn’t to last falling sharply as US inflation data came in, the cross retreating to 0.5965 levels. CPI came in higher than forecast of 3.4% y/y at 3.5%. This is the third straight month prices have increased above expectations. The Fed now will dial back interest rate cuts predicted earlier this year. Inflation cooled at the end of 2023, but the Fed now seems less confident they will see levels around 2.0% targets in 2024 making for a slower pace of cuts. Earlier the Reserve Bank of New Zealand (RBNZ) held interest rates unchanged at 5.5% as widely expected the 6th meeting in a row. The RBNZ said they were confident by leaving rates unchanged will return the inflation rate back to a 1-3% target band within 2024. We are a little surprised at the optimism showed by the RBNZ with growth weak and unemployment about to plunge. Overall direction in the cross is still to the downside.

The current interbank midrate is: NZDUSD 0.6001

The interbank range this week has been: NZDUSD 0.5964- 0.6082






Previous ArticleNext Article