At the close of Australasian trading the New Zealand Dollar was trading above 0.52 pence against the Pound and brushing a three-year high against a struggling US Dollar.
This week the ‘Kiwi’ has been supported by positive developments in Australia (New Zealand’s largest trading partner) and the currency was able to extend recent gains as the Australian unemployment rate unexpectedly declined.
Domestic data also benefited the currency and New Zealand’s performance of manufacturing index for March came in at 58.4, up from a positively revised 56.5 in February and well above the 50 mark separating growth from contraction.
The increase was largely due to improved employment, production and new orders.
While the Pound has been putting in a solid performance against several of its peers this week thanks to upbeat UK industrial/manufacturing reports and better-than-forecast trade figures, the New Zealand Dollar is holding its British rival at bay.
The Pound was little-changed after the UK RICS house price balance increased by 57 per cent in March, up from 47 per cent in February and smashing the 44 per cent estimate. The report showed that house sales were at a six-year high, with prices rising in every area of Britain.
Yesterday the New Zealand Dollar was also able to surge against a broadly softening US Dollar as investors digested the Federal Open Market Committee’s dovish minutes, and although Chinese trade data left a lot to be desired, ‘Kiwi’ losses were limited.
According to Sydney-based currency strategist Robert Rennie; ‘The Kiwi does look well supported. The Fed’s minutes emphasised that you shouldn’t be looking at forecasts, you should be looking at its overall message, and that is: rates will stay super-accommodative for a considerable period of time.’
In the hours ahead GBP to NZD fluctuations could occur in response to the Bank of England’s rate decision, taking place at 11:00 GMT.
While positive UK data has largely been priced into the market, if the BoE adopts a hawkish stance today Sterling could advance.
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,0.8740,
New Zealand Dollar,,Euro,0.6303,
New Zealand Dollar,,Australian Dollar,0.9255,
New Zealand Dollar,,Pound Sterling,0.5207,
US Dollar,,New Zealand Dollar,1.1476 ,
Euro,,New Zealand Dollar,1.5869 ,
Australian Dollar,,New Zealand Dollar,1.0812,
Pound Sterling,,New Zealand Dollar, 1.9210,
[/table]
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