The New Zealand Dollar (NZD) retreated Monday off the 0.5960 open against the US Dollar (USD) to post 0.5850 before reversing hard back to 0.5970. US Equity markets were to blame opening the week in the red, most falling over 2.5% taking all risk along for the ride. NZ Employment data came in hot Wednesday with a rise of 0.4% in the June quarter after -0.2% was predicted. The unemployment rate also rose to 4.6% from 4.4% after 4.7% was expected. It seems the slightly stronger than expected data fuelled the kiwi towards 0.6000 before NZ inflation expectations halted topside moves. The two-year forecast fell from 2.33% to 2.03% which could have a detrimental effect on the NZD pushing higher. Trading into Friday the cross is at 0.6012. Next week’s RBNZ cash rate should be interesting with markets split as to whether the central bank will cut rates from 5.50%.
The current interbank midrate is: NZDUSD 0.6005
The interbank range this week has been: NZDUSD 0.5848- 0.6023