FX News

NZD/USD Transfer:

The New Zealand Dollar (NZD) has put in a stellar performance this week- not only against the US Dollar (USD) but across the main G10 board. Rising to reach 0.6295 early today prior to dropping back to 0.6270 as I write. Fed raised their cash rate from 5.0 to 5.25, quite possibly the last hike in the long hiking cycle by the Federal Reserve, the 9th hike in a row going back to March last year. Interestingly markets are still pricing in chances around 85% that the Fed will start cutting rates by year end despite the hawkishness of ongoing rhetoric. NZ Unemployment to March remained at 3.4% after expectations of a rise to 3.5% with participation at a respectable 72.0%. The ongoing high participation rate and strength in the labour market has been a mark of very few borrowers defaulting on debt repayments with the RBNZ saying to date ‘there has been limited signs of distress in lending portfolios’. Orr’s report added the NZ banking system capital and liquidity positions were strong. Retesting 0.6300 levels looks on the cards before the weekly close, a significant run through here however looks unlikely.

The current interbank midrate is: NZDUSD 0.6290
The interbank range this week has been: NZDUSD 0.6160- 0.6297

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