The New Zealand Dollar (NZD) slipped below key 0.6200 yesterday against the US Dollar (USD) clocking 0.6180 into Friday trading as it looks bearish. Markets turned risk averse buying the greenback in post “Fed” selling, the Fed raising rates 25 points to 5.50% the 11th raise since March 2022 and a 22 year high. It’s possible this could be the last hike in this cycle with inflation coming down recently although the Fed remains open to further tightening if inflation throws a curveball. Also of note, the Fed aren’t predicting a recession in 2023, Powell adamant the US economy will come down soft. Technically the pair is trading at the bottom of an uptrend channel suggesting we may see the kiwi push back to 0.6200 in the near term.
The current interbank midrate is: NZDUSD 0.6185
The interbank range this week has been: NZDUSD 0.6155- 0.6273