The Federal Reserve kept their interest rate at the highest level in over 2 decades yesterday blaming inflation setbacks for the “higher for longer” mantra. A wait and see approach which could last many months to come if we don’t see a marked weakening of the US economy. The New Zealand Dollar (NZD) reversed off 0.5870 reaching the 0.5960 level in early Friday trading and now targets the early week high at 0.5985. Assisting the kiwi was US equity markets rising over 1.0% in the NY session post the Powell speech. The Fed also saying they were committed to reducing their 7.4 trillion asset portfolio as rate hikes were off the table. Tomorrow mornings US Non-farm Payroll and unemployment rate will move prices.
The current interbank midrate is: NZDUSD 0.5963
The interbank range this week has been: NZDUSD 0.5872- 0.5983