New Zealand Unemployment rose from 3.6% to 3.9%, the highest level in 2 years while wage growth slowed. The New Zealand Dollar (NZD) rising to 0.5915 against the US Dollar (USD) boosted also by a fresh wave of “risk on” and poor US data. The Federal Reserve left rates unchanged at 5.50% from the 22-year high signalling rates would remain high well into 2024 in order to hold inflation under control. Markets look to have priced in a peak of 5.50%. The Fed will never rule out hiking further but for now it’s all about “hot” economic data dependent. US Non-Farm Payroll and US Unemployment releases tonight expect more swings and possible upside in the NZD.
The current interbank midrate is: NZDUSD 0.5891
The interbank range this week has been: NZDUSD 0.5787- 0.5915