The New Zealand Dollar has strengthened against the Pound and Euro due to the continuously improving demand for riskier assets in the wake of any military action against Syria being put on hold until at least next week.
Against its Australian counterpart the ‘Kiwi’ slumped after the bigger Oceanic country posted data showing that its economy expanded at a faster-than-expected pace in the second quarter of the year. The data dulled expectations for the Reserve Bank of Australia to cut interest rates further at its next policy meeting.
The Australian economy grew by 0.6% in the three months ending on June 30th, ahead of economist forecasts of an expansion of 0.5%.
A military strike against Syrian leader Bashar al-Assad’s regime has been postponed until the outcome of a US Congressional vote is decided. Action is likely to be postponed further even if a yes vote is achieved due to mounting pressure from Russia. Vladimir Putin, the Russian President warned that any military strikes must have the backing of the United Nations.
“If there is evidence that chemical weapons were used, and by the regular army… then this evidence must be presented to the UN Security Council. And it must be convincing,” Mr Putin said.
As a result of the delay in action demand for riskier currencies has improved with the New Zealand Dollar, Indian Rupee and others recovering some ground.
The next piece of data that is likely to create volatility for the ‘Kiwi’ is due for release on Friday. US employment figures are likely to give the markets a clearer indication as to when the US Federal Reserve will begin to taper its monetary easing programme. The Central Bank said previously that any tapering decision depends on a lowering of the jobless rate.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7867 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5974 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5048 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8604<
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2710 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9807 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6736
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2087 <
(Correct as of 09:45 am GMT)
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