Although the Pound was boosted yesterday, the GBP to NZD pairing closed Australasian trading in a weaker position.
On Tuesday Sterling strengthened against several of its most traded rivals as UK industrial/manufacturing production reports revealed an unexpected rebound.
The Pound received additional support from the news that the NIESR GDP estimate for March came in at 0.9 per cent, unchanged from positively revised growth of 0.9 per cent in February.
However, overnight the ‘Kiwi’ advanced on its British counterpart.
The New Zealand Dollar broadly strengthened after home loans in Australia, its largest trading partner surged by more than expected.
Australian home loans jumped by 2.3 per cent in February, more than the increase of 1.5 per cent anticipated.
New Zealand’s card spending figures might have fallen short of forecasts, but the ‘Kiwi’ ended the local session higher against the Pound and US Dollar thanks to this Australian development.
Card spending in the South Pacific nation stalled in March as people spent less on clothing and fuel. Economists’ expected the value of retail card spending to increase by 0.4 per cent in March, month-on-month, but it was unchanged from February.
General card spending declined by 0.2 per cent last month following an increase of 0.6 per cent in February.
However, one industry expert asserted that the result; ‘is not a great surprise given that there was quite a strong increase in spending in the previous month. March card spending is likely to have been affected by good weather delaying winter clothing purchases. Elsewhere, steady growth in spending continues. Strong consumer confidence and population growth should continue to drive greater consumption over 2014.’
During the European session UK trade data revealed that the UK’s total trade balance came in at -9.1 billion Pounds in March, down from a positively revised -9.5 billion Pounds in January.
Consequently the Pound to New Zealand Dollar exchange rate may well fluctuate as trading continues.
Later today Federal Open Market Committee meeting minutes will be released. If the minutes reveal more of the Fed’s intentions regarding fiscal policy, currency market volatility could occur.
Investors will also be looking ahead to New Zealand’s performance of manufacturing index. The gauge came in at 56.2 in February (above the 50 mark separating growth from contraction) and another strong result today would add to the case for the Reserve Bank of New Zealand steadily raising interest rates and may lend the ‘Kiwi’ support.
New Zealand Dollar (NZD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.8693,
New Zealand Dollar,,Euro,0.6300,
New Zealand Dollar,,Australian Dollar,0.9278,
New Zealand Dollar,,Pound Sterling,0.5194,
US Dollar,,New Zealand Dollar,1.1534 ,
Euro,,New Zealand Dollar,1.5872 ,
Australian Dollar,,New Zealand Dollar,1.0779,
Pound Sterling,,New Zealand Dollar, 1.9260,
[/table]
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