FX News

NZD/USD Transfer

The Federal Reserve confirmed this morning they were far from finished with hiking rates with the CPI rising from 6.4% to 6.5% for the year ending January 2023. Any chances of rates coming down is not predicted until well into 2024-2025 years. The New Zealand Dollar (NZD) jumped around on the news arriving back where it started early morning circa 0.6340. The cross has been pushing off the 200-day moving average of late at 0.6370 with investors not keen to push through these levels in line with US equities posting losses. NZ Inflation expectations fell from a 31-year high Tuesday prompting markets to consider further large rate hikes may be over. Two-year forecasts have eased from 3.62% in December to 3.3%. The next RBNZ meeting is on the 22nd of February with picks of a 50-point hike to 4.75% instead of earlier pricing of a rise to 5.0%. This alone should put pressure on the kiwi heading into next week with a retest of the 11-week low at 0.6220 possible.

The current interbank midrate is: NZDUSD 0.6334
The interbank range this week has been: NZDUSD 0.6296- 0.6388

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