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The week started quietly with mixed results on Wall Street. The yield on the US 10-year fell by 1bp to 4.25%, and the USD declined overall due to a decline in the DXY and a rebound in the euro. Chicago Fed President Austan Goolsbee expressed that the Fed might consider cutting rates if inflation continues to ease, as suggested by the promising May CPI report. He also emphasized that Fed decisions are independent of politics or elections, indicating that the upcoming US presidential election wouldn’t influence their actions. On a more cautious note, San Francisco Fed President Mary Daly mentioned that pre-emptive measures are only taken if there are visible risks, but currently the labor market appears strong.
NZDUSD is range bound between 0.6100 & 0.6150. Support at 0.6100 has held for now, which is a positive technical sign. However, we’ll need to watch how inflation data from Australia and the US unfolds later this week.
NZDAUD is trading around 0.9200, slightly rebounding as Aussie yields eased after their post-RBA surge.
NZDJPY is currently trading at 97.70 after reaching a new 17-year high just below 98.00 and testing higher due to JPY weakness. Yesterday, Japan mentioned a verbal intervention on the yen, with Vice Finance Minister Kanda warning that authorities are ready to act in the currency markets 24/7 if needed, and that they are prepared to take appropriate action against excessive speculative moves. The market largely ignored his comments and the daily warning from Finance Minister Suzuki. USD/JPY faced resistance just under 160.00.
NZDEUR is trading at 0.5700, while the Euro continues to face pressure ahead of the upcoming French election.
Today’s schedule includes the release of Aussie & US Consumer Confidence data, as well as Canadian CPI figures.
Here are the latest mid-market rates:
| Currency Pair | Mid-market rate |
| NZD/USD | 0.6117 |
| NZD/AUD | 0.9195 |
| NZD/JPY | 97.68 |
| NZD/CNY | 4.4556 |
| NZD/EUR | 0.5700 |
| NZD/GBP | 0.4823 |
| NZD/HKD | 4.7759 |
| NZD/SGD | 0.8276 |
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