The New Zealand Dollar (NZD) continues to push higher against the US Dollar (USD) with prices reaching low 0.65’s recently as risk improves and the greenback comes under pressure. This week however we have seen the kiwi drift back to 0.6300 levels as markets start to thin out for xmas and new year breaks. Overall pressures remain for the NZD as the recent trend is predicted to stall as we ponder a bigger picture downward extension as the rally ends. Initially the NZD held up post the bumper 3rd quarter GDP result coming in at 2.0% vs 0.8% expected following a 1.9% in the second quarter, the services industry the main driver. Meanwhile US consumer confidence jumped to its highest levels in 8 months since inflation has eased and gas prices have dropped. Topside moves above 0.6500 look unlikely.
The current interbank midrate is: NZDUSD 0.6297
The interbank range this week has been: NZDUSD 0.6276- 0.6408