FX News

NZD/USD Transfer:

NZ CPI shrank to 6.7% year on year yesterday, with the March quarterly figure publishing at 1.2% down from fourth quarter numbers of 1.7%. Clearly this is good news for the NZ economy, but not good enough, with inflation still elevated well beyond what the RBNZ feel is comfortable. Prices rose at a slower pace for housing and utilities 7.1% vs 8.0%, transport 3.7% vs 7.4% meanwhile prices rose for food 11.3% vs 10.7% and alcohol and tobacco 7.4% vs 5.9%. The New Zealand Dollar (NZD) was marked down following the publication falling away across the main board of currencies a quarter of a percent. The NZD/USD cross dropped from around 0.6200 levels towards 0.6150, early Friday it was back around 0.6175. Fed member Williams spoke yesterday supporting the argument for another rate rise saying they will use monetary tools to reduce inflation. Downside bias remains for the kiwi.

The current interbank midrate is: NZDUSD 0.6169
The interbank range this week has been: NZDUSD 0.6157- 0.6224

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