The New Zealand Dollar (NZD) continues to outperform the US Dollar (USD) pushing up to 0.6490 this morning the highest level in the cross since June. The Federal Reserve unanimously raised rates 50 points as predicted this morning to 4.5%, the highest cash rate since 2007. Talk suggested they will continue hiking to over 5% in early 2023, notably higher than previously expected. Meanwhile earlier in the week US Inflation came in lower than predicted at 7.1% year on year after 7.3% was forecast. The Fed is making slow progress with their fight against inflation- leading the way is recent price declines in energy. Third quarter NZ GDP came in at 2.0% vs 0.8% predicted showing expansion for the second straight quarter after 1.9% in the June to August quarter. Looking ahead we have US Retail Sales printing early tomorrow. We expect more upside for the kiwi with a possible retest over the coming days of 0.6570
The current interbank midrate is: NZDUSD 0.6455
The interbank range this week has been: NZDUSD 0.6346- 0.6514