NZD consolidates in June
• After the strong performance in May, NZD/USD consolidated in a tight range in June, closing the month down less than 1%.
• NZD/AUD fell just over 1% after a weak run of NZ economic data and stronger than expected Australian inflation data.
• JPY was the worst performer, reflecting the BoJ’s reluctance to tighten policy; NZD/JPY traded at its highest level since 1986.
Kiwi flies through May
• After a poor run through the first four months of the year, NZD/USD bounced back strongly in May, up 4½%.
• A broadly weak USD, higher risk appetite, higher commodity prices and a more hawkish than expected RBNZ were factors.
• The NZD’s outperformance saw it higher on all the key crosses, including reaching a 17-year high against the beleaguered yen.
NZD remained soft in April
• Positive inflation surprises in the US drove higher rates, spilling into other markets, and a broadly stronger USD
• The NZD hit fresh lows against the USD and AUD, but with modest net depreciation overall
• JPY was the weakest major by far, following higher global rates and the BoJ remaining dovish; NZD/JPY rose almost 3%