Price stalled out midweek around 0.6400 at key resistance in the New Zealand (NZD), US Dollar (USD) cross falling towards 0.6230 into late Thursday sessions. Soft equity markets took the kiwi down across the board, correcting back to a pivotal support area around 0.6220. New Zealand CPI published at 6.0% in June y/y after 5.9% was forecast, this is down from May’s 6.7% which is positive but not good enough according to pundits. Fuel prices have eased 15% over the year while offsetting vegetable prices up 23.3% had the biggest impact. The “on hold” RBNZ policy may be tested at the August 16th meeting. We suspect the pair may push towards 0.6300 prior to the weekly close.
The current interbank midrate is: NZDUSD 0.6231
The interbank range this week has been: NZDUSD 0.6212- 0.6368