The New Zealand Dollar (NZD) sits in a familiar pocket this morning against the US Dollar (USD) after making moves higher yesterday but falling back to 0.6100 areas. Fed minutes suggested the central bank may not be done with their tightening cycle and could still hike rates clearly more hawkish than we were expecting creating USD buying. Earlier the RBNZ kept rates on hold at 5.5% as widely expected due to stubborn domestic inflation, Orr delivering a shock hawkish tone saying the bank remains concerned with domestic pressures and capacity constraints in the economy. Then kiwi spikes half a cent post the release before returning lower. Rate cuts could be now delayed towards the second quarter of 2025. We may see a little NZD strength into the close.
The current interbank midrate is: NZDUSD 0.6088
The interbank range this week has been: NZDUSD 0.6082- 0.6151