The NZ Dollar has had a mixed week and ending up pretty much where it begun against both US Dollar and Pound. Tuesday’s strong inflation reading initially led to a rally with investors reducing the expectation of further interest cuts beyond November’s meeting. Confirmation of China’s growth level at 6.7% also helped steadied the waters.
However, once the excitement subsided and investors remembered that they are still expecting an interest rate cut at the next RBNZ meeting the NZ Dollar gave up most of the ground it had gained. The modest recovery in the value of the Pound during the course of the week also helped fight against the brief NZ rally.