FX News

NZD/USD Transfer:

The New Zealand Dollar (NZD) has been the weakest currency this week, falling to the 0.6050 level against the US Dollar (USD) into Friday over 2 cents since Mondays open. A 25-point hike by the Reserve Bank of New Zealand to 5.50% would usually be positive for the currency, but not on this occasion with most of the announcement already priced into the chart. Governor Orr’s comments suggesting higher rates are needed to combat inflation so that consumer inflation returns to its target range. It was noted that higher interest rates were having a negative impact on the economy and consumer wallets. It was also noted that annual budget spending and recovery funding for Cyclone Gabrielle could cost the economy over 14B and add to further inflation woes. US debt ceiling negotiations and a lack of a result pushed investors into the safe haven greenback adding to the kiwi slump. Fundamentally and technically the kiwi’s momentum is to the downside with support now at 0.6000 then 0.5550 the October 2022 low.

The current interbank midrate is: NZDUSD 0.6054
The interbank range this week has been: NZDUSD 0.6042- 0.6301

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