The New Zealand Dollar (NZD) consolidated around 0.5900 early in the week against the US Dollar (USD) after extending moves lower on the strength of the greenback. A little profit taking from the NZD shorts came into play. NZ consumer prices rose less than expected in the first 3 months of the year to March. Year on year inflation came off 4.7% dipping to 4.0% after expectation of a 4.3% read. This makes it the lowest CPI since June 2021. The big dollar is still very well supported with the geopolitical uncertainty in the air. Fed’s Powell has signalled a delay to rate cuts due to stubborn inflation saying they will hold “as long as needed” with the recent data not ideal. We expect prices in the cross to drift back to the low at 0.5860 over the next few days.
The current interbank midrate is: NZDUSD 0.5896
The interbank range this week has been: NZDUSD 0.5858- 0.5952