Weaker-than-expected inflation will clip the NZ dollar's wings

Westpac Bank’s Imre Speizer says further weakness in the NZ dollar against the greenback could be limited if the US Federal Reserve starts cutting rates before the RBNZ. (Image: Getty)

Rebecca Howard

Wed, 17 Jul 2024

If Wednesday’s inflation data is weaker than expected, this will add to the pressure on the New Zealand dollar.The kiwi was trading at 60.57 US cents late Tuesday in Wellington and at 89.76 Australian cents. Since July 1, it has shed 0.8% against the greenback and 1.7% against the Aussie due to a raft of weak data and a dovish tilt from the Reserve Bank of NZ (RBNZ). The NZ fixed interest markets are also reacting.The two-year swap rate is trading around 4.44%, while the 10-year swap rate is at 4.23%. Since the beginning of July, the...

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