The New Zealand Dollar (NZD) bull run ended abruptly Wednesday against the US Dollar (USD) as risk markets turned. Equity markets are all off highs as prices in the cross retrace from 0.6175 the early June high to 0.6120 into Friday. The Fed have said they wouldn’t look at rate reductions until they had confidence in “sustainable” inflation towards their 2% target. Also on concern is the weakening jobs market and recession fears. Powell speaks at the Jackson Hole event later today and should confirm a pessimistic view of things to come. Topside moves by the kiwi could be tough with massive resistance at 0.6200.
The current interbank midrate is: NZDUSD 0.6144
The interbank range this week has been: NZDUSD 0.6025- 0.6177