3:12 PM (NZT) The NZD has steadily made ground against the EURO throughout the course of this week. The reversal of the risk aversion was initially started by a rumour the IMF would provide bailout funds to Italy, Whilst this was denied the move was underway and accelerated as the news came out on Wednesday of the coordinated central bank US dollar funding action. The move appears to have lost a little momentum at current levels. With both central banks announcing monetary policy decisions next week, there is room for volatility either way. Expect the RBNZ to remain unchanged, but there is a possibility of a 25pt cut to the cash rate from the ECB. Moves will be accentuated for the next six weeks or so as we head into the holiday season and end of the year, with lower levels of liquidity.
 
The current interbank midrate is:                                                            NZDEUR .5790                                          EURNZD 1.7271
                                                               
The interbank range so far this week to date has been:                                                                                     NZDEUR .5585 - .5812                           EURNZD 1.7205 – 1.7905