Going long on NZDUSD

27 Haz 2023

The Kiwi dollar increased by 0.35% to $0.6186 on Tuesday, strengthening for the second straight session, supported by hopes that interest rates in New Zealand will remain higher for longer amid persistently high inflation. The country's annual inflation rate was at 6.7% in Q1 of 2023, more than twice the bank’s target range but was also lower than an over 7% peak hit during the December quarter. Since October 2021, the RBNZ has raised borrowing costs by a total of 525 bps to 5.5%. Meantime, the dollar index was little changed at around 102.6 after falling in the previous session, ahead of a slew of economic data including a key US inflation gauge, durable goods, and the University of Michigan's consumer sentiment index this week, and as investors await Fed Chair Powell's speech that could throw light on the central bank's tightening path