New Zealand dollar trades above 63 US cents

Daily Currency Update

The Kiwi dollar is stronger this morning when valued against the Greenback. Last week the Kiwi dollar reached the highest levels in a month, up half a percent and trading above 63 US cents heading into Friday’s European session. The Kiwi dollar remains supported after the Reserve Bank of New Zealand surprised markets in April, with its decision to increase interest rates by another 50 basis points to 5.25%, against expectations for a smaller move. NZ Consumer Price Index (CPI) moderated to 6.7% y/y in the first quarter and the lowest level in more than a year, but remains close to its three-decade highs (7.3%). Last week NZ unemployment rate steadied at 3.4%, not far from the historic lows (3.2%).
Fairly quiet week ahead on the local data front in New Zealand. On Thursday Statistics New Zealand will release Food Price Index (FPI). Although food is among the most volatile consumer price components, this indicator garners some attention because New Zealand's major inflation data is released on a quarterly basis. On Friday Business NZ will release the Performance of Manufacturing Index a survey of manufacturers that asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The Reserve Bank of New Zealand will release the quarterly Inflation Expectations a survey of about 100 consumers that asks respondents where they expect prices to be 24 months in the future. Finally, on Friday Statistics New Zealand will release the monthly Visitor Arrivals.