The Pound was already on the back foot as local trading began on Friday and the GBP to NZD pairing consolidated losses during the European session.
During Australasian trading the New Zealand Dollar recovered losses against several of its major rivals as reports demonstrating the strength of the US economy boosted higher-risk assets.
The ‘Kiwi’ rallied against a struggling Pound and was holding fairly steady against the US Dollar having broadly softened yesterday in response to growth data for New Zealand.
In the view of forex strategist Sam Tuck; ‘There’s nothing to suggest the New Zealand side of the story is going to look weak. That should keep the Kiwi in demand on any dips.’
The New Zealand Dollar remained supported even as domestic credit card spending data showed a slowing in expenditure in February.
Credit card spending increased by 0.3 per cent in February, month-on-month, following a monthly increase of 1.0 per cent in January.
On the year credit card spending was up 5.9 per cent, down from January’s 9.2 per cent annual increase.
Separate data showed that New Zealand’s ANZ consumer confidence came in at -0.8 per cent in March month-on-month following a reading of -2.1 per cent in February, month-on-month.
Meanwhile, seasonally adjusted net migration in the South Pacific nation rose from a positively revised 3120 to 3470 last month.
Although the US Dollar was buoyed by yesterday’s initial jobless claims report and the surge in the Philadelphia Fed manufacturing activity output gauge, the New Zealand Dollar held its own against its safe-haven rival.
TVNZ quotes one industry expert as noting; ‘There’s been further US Dollar strength overnight and the New Zealand Dollar has withstood that, and with the Australian Dollar it has moved alongside the US Dollar. The US has got a better story than major economies outside of China and New Zealand has got an even better story.’
During European trading the Pound to New Zealand Dollar pairing was moderately affected by the news that the UK posted a larger-than-anticipated budget deficit last month as a result of soaring government spending.
Next week the most influential economic report for New Zealand to be aware of is the nation’s trade balance figures.
GBP/NZD volatility could also be occasioned by UK growth and retail sales figures and China’s HSBC/Markit PMI.
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,0.8562,
New Zealand Dollar,,Euro,0.6208,
New Zealand Dollar,,Australian Dollar,0.9423 ,
New Zealand Dollar,,Pound Sterling,0.5189,
US Dollar,,New Zealand Dollar,1.1677,
Euro,,New Zealand Dollar,1.6126 ,
Australian Dollar,,New Zealand Dollar,1.0602 ,
Pound Sterling,,New Zealand Dollar, 1.9252,
[/table]
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