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...

Unlock all stories free for 10 days

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

We won’t charge for 10 days. You can cancel anytime with two clicks, an email or a phone call. Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].interval) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

You will be charged in 10 days unless you cancel beforehand.
We will remind you three times before charging you.
All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}