It’s been a “shifty” few days in the New Zealand Dollar (NZD), US Dollar (USD) cross with action between 0.6170 and 0.6270 seen around Federal Reserve and NZ GDP releases. The Fed surprised markets when they cut interest rates from 5.50% to 5.00% instead of 25 points predicted sending the USD rallying. Yes, rallying- we were surprised as anyone to see the kiwi post losses around the release. GDP helped the kiwi push a little higher throughout yesterday’s sessions. Year on year NZ GDP fell back to -0.2%, coming in lighter than the -0.4% we were expecting driven mostly by spending declines in food, accommodation and food services such as restaurant trade. We expect the NZD to retest 0.6300 before the weekly close.
The current interbank midrate is: NZDUSD 0.6235
The interbank range this week has been: NZDUSD 0.6152- 0.6267