Although the ‘Kiwi’ had a little wobble earlier this week when New Zealand’s Finance Minister issued remarks regarding the economic benefits of a weaker currency, it ends the week on a high, having gained on the majority of its peers as a result of strong domestic data.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5224 as of 10:20 am GMT
While the Federal Reserve’s shocking new stance on easing boosted higher-risk assets like the ‘Kiwi’, positive domestic growth data also helped the New Zealand Dollar advance on the Pound and achieve a four-month high against its broadly softening US peer.
Then UK retail sales figures failed to meet expectations, and the ‘Kiwi’ was able to extend gains against the British currency.
Overnight, concerns that the Fed-inspired rally in higher-risk currencies may have been overdone saw the New Zealand Dollar modestly pare its gain against the ‘Greenback’, although the currency received support from data showing that credit card spending in New Zealand climbed by 6.6 per cent in August year-on-year, following an upwardly revised gain of 4.8 per cent the previous month.
Month-on-month, sales increased by 1.2 per cent.
The NZD/GBP exchange rate hit a high of 0.5240 pence per Dollar
The result saw the ‘Kiwi’ post a 3.1 per cent five-day gain against the US Dollar and consolidate its surge against the ‘Aussie’.
The increasing odds of the Reserve Bank of Australia issuing a rate cut also aided the NZD/AUD advance.
As currency strategist Kengo Suzuki notes; ‘The difference in the monetary-policy outlooks is very clear: the RBA continues to signal a possible rate cut, while New Zealand’s central bank has said it may raise rates next year. Aussie-Kiwi has some more room to fall.’
However, during the European session the NZD/GBP pairing slipped slightly as a report showed a narrowing in the UK’s budget deficit.
The most influential New Zealand data to look out for next week is Tuesday’s trade balance figures, due out at 22:45 GMT.
Current New Zealand Dollar (NZD) Exchange Rates:
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The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8395 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6187 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5224 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8878 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1930 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9139 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6126 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1274 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1678 <
(Correct as of 10:20 GMT)
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