The New Zealand Dollar (NZD) struggled early week against the US Dollar (USD) falling back to around 0.6050 levels. A little risk on support then reversed the cross higher to 0.6120 in early Friday. The kiwi improving on worse than expected US ISM numbers Wednesday. Next week’s RBNZ meeting will see no change to the 5.50% interest rate. On the periphery is the Presidential campaign which could have a detrimental effect on the NZD, especially if Biden pulls out. US non-farm payroll releases tonight with predictions we may see a poor result putting pressure on the greenback. With signs of disinflation and a slowing labour market in the US the Fed could cut interest rates at their September meeting. A break past 0.6130 is needed for further NZD upside momentum.
The current interbank midrate is: NZDUSD 0.6117
The interbank range this week has been: NZDUSD 0.6046- 0.6128