This article is for general information purposes only.
We’ll get a look at some key US events today and Wednesday that could have an impact on the direction of the US dollar. He added that more rate hikes are coming, while acknowledging that the pace of tightening could slow in the near future. Hawkesby said that the RBNZ was deliberately being ambiguous about the peak for rate levels, saying it could be at 4.00% or 4.25% or thereabouts. The central bank is cautiously positive about the economic outlook, predicting that the economic downturn will not turn into a recession.ĭeputy Governor Christian Hawkesby said in an interview this week that the slowdown should lower inflation and bring employment to a more “sustainable level”. Inflation has hit 7.3%, but the RBNZ is confident that it will peak soon and expects inflation to fall to 3.8% by the end of 2023. The central bank is expected to add another 50bp hike at the October meeting, which would bring the cash rate to 3.50%. The RBNZ is in the midst of an aggressive rate-hike cycle, having raised rates by 50 basis points for a fourth consecutive time. The kiwi is still smarting from a disastrous week, in which NZD/USD plunged 4.40%.
In the European session, NZD/USD is trading at 0.6176, up 0.10%. The New Zealand dollar is paddling in calm waters, as NZD/USD trades close to 1-month lows.