The Reserve bank of New Zealand (RBNZ) cut the key interest rate by 50 points Wednesday from 4.25% to 3.75% as predicted. This was the fourth time in a row they have dropped it. The central bank is now forecasting a drop to 3.00% in 2025, we predict 50 of this will come at the April policy meeting with the economy still spluttering. US Dollar weakness came into play midweek with tariff talks and a “risk on” tone after positive developments in the Russia/Ukraine peace talks. At 0.5760 into Friday up from the midweek low of 0.5675 we expect further topside moves by the kiwi could be overdone.
The current interbank midrate is: NZDUSD 0.5759
The interbank range this week has been: NZDUSD 0.5677- 0.5771