Big Dollar strength has been the theme over the week with the New Zealand (NZD) drifting lower Friday to 0.6170 levels. We did see 0.6220 midweek after Westpac NZ consumer confidence released better than expected with second quarter data rising to 83.1 from 77.7 previously, however this is still well below the average. Also, of note- Powell’s testimony weakened the USD after saying inflation remains sticky and could rise further. Markets are predicting only 1 further hike from the Fed, but the Fed has two planned. Two hikes we believe would almost certainly put the US economy into recession. Chinese Outlook soured markets Thursday taking equity markets lower and the kiwi with it. The kiwi is looking soft, keeping above 0.6000 will require effort.
The current interbank midrate is: NZDUSD 0.6189
The interbank range this week has been: NZDUSD 0.6133- 0.6237