The New Zealand Dollar (NZD) has held up around 0.5900 levels most of the week against the US Dollar (USD) in volatile trading. US Inflation is back in causing the Fed problems, rising in the August month by 0.6% and shifting the year-on-year figure from 3.6% to 3.7%, the second rise in a row. The Fed raised rates to a 22 year high in July and the call to raise rates again will largely depend on incoming data, certainly prospects look as though another hike in the fourth quarter may be required. Next week’s Fed meeting is widely predicted to hold at 5.5%. The pair may be losing momentum to the topside analysing the long-term bear channel on the chart. Those needing USD should consider.
The current interbank midrate is: NZDUSD 0.5904
The interbank range this week has been: NZDUSD 0.5879- 0.5945