NZD/USD at the highs of the day
The New Zealand dollar edged above yesterday’s high to touch a fresh three-month high at 0.6747.
New Zealand CPI numbers matched estimates on Monday at 1.7% but this week’s dairy auction results were positive, with prices up 2.7%.
In the big picture, it’s been grinding back higher after being punished for cutting rates on May 8. Another cut is expected in August (priced 83%) but the central bank is starting to look ahead of the curve. Growth is still expected up 2.5% this year and forecast to rise to 2.6% next year. Those aren’t blockbuster numbers but they beat out much of the field.
When you take a step back, there are a series of higher lows that began in 2015. It would take confirmation of a rise above 0.7000 to get the bulls excited but this might be a solid starting point. The NZD calendar is bare until trade data on July 23.