The New Zealand Dollar (NZD) recovered off 0.5870 midweek post the RBNZ meeting reversing losses against the US Dollar (USD) to 0.5965 into Friday. Despite dovish comments from the RBNZ governor the kiwi held firm, the currency also benefiting from improving risk markets as equities rallied. The central bank expects inflation to fall to between the 1-3% target around mid-2024 but monetary policy would remain at sustained levels for a decent period. Tonight’s Non-Farm Payroll will be closely watched and could be a poor report if Thursday’s ADP is a signal. With the NZD targeting 0.6000 on the chart anything north of this level represents good buying of USD in a bear cross.
The current interbank midrate is: NZDUSD 0.5966
The interbank range this week has been: NZDUSD 0.5871- 0.6008