After Chinese economic data printed poorly on Wednesday morning, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate has strengthened by around 0.27%. Data pertaining to New Zealand, however, printed positively which has slowed the decline.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0515.
Late on Tuesday evening, data out of New Zealand printed relatively positively, which initiated a ‘Kiwi’ (NZD) uptrend. Employment Change rose above expectations from 0.4% to 0.8% on a quarterly basis. On a yearly basis, Employment Change eclipsed the median market forecast of a drop from 3.7% to 3.0%, with the actual result only falling to 3.2%. The Unemployment Rate managed to decline beyond the market consensus from 5.6% to a five and a half year low of 5.4%.
However, the resultant ‘Kiwi’ gains were short-lived after data from China disappointed. China’s Composite PMI decreased from 52.3 to 51.7 while the Services PMI declined from 53.5 to 52.9.
Commenting on the Chinese Services PMI, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said; ‘Both new and outstanding business improved, although the latter remained in contraction. Price pressures diverged as input prices continued to rise while output prices saw a marginal reduction.’
The Pound Sterling to New Zealand Dollar exchange rate has fallen to a low today of 2.0431.
So far on Wednesday morning British data has been disappointing, which has seen the Pound decline against the majority of its most traded peers. The British Retail Consortium’s (BRC) Shop Price Index was forecast to improve from -1.8% to -1.7%, but the actual result dropped to -1.9%.
Pound Sterling to New Zealand Dollar (GBP/NZD) Forecast to Strengthen
With the British Composite and Services PMIs due for publication later on Wednesday morning, it is likely that the GBP/NZD exchange rate will advance should the British data meet with the market consensus.
The Pound Sterling to New Zealand Dollar exchange rate has reached a high today of 2.0546.
UPDATE
GBP/NZD Exchange Rate Continues Trending Higher
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0558. Movement is around 0.48% which is likely to be as a result of cautious trading as investors digest the disappointing Chinese data.
British economic data has been negative on Wednesday. The Composite PMI has declined beyond expectations having dropped to 55.8 from 57.4. The Services PMI was forecast to soften from 58.7 to 58.5, but the actual result fell to 56.2.
However, the Pound has continued to increase against the New Zealand Dollar. This is likely to be as a result of trader risk aversion after the Chinese data provoked anxieties over global economic disparity.
GBP/NZD Exchange Rate Rallies on Risk Aversion
The Pound Sterling to New Zealand Dollar exchange rate has advanced by around 1.11%, and is currently trending in the region of 2.0685.
The commodities market has declined to its lowest level since July 2009. The Bloomberg Commodity Index (BCOM) of 22 raw materials dropped as much as 0.9 percent to 115.4897. This has caused safe-haven assets to strengthen and commodity correlated currencies to depreciate.
With trader risk aversion driving the foreign exchange market, the US Dollar has risen against nearly all of its major peers. This has aided the ‘Kiwi’ (NZD) downfall.
GBP/NZD Exchange Rate Softens ahead of BOE Policy Meeting
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0640.
On Thursday morning the Pound has gradually declined against most of its major peers as traders await the Bank of England Rate decision. Although most agree that there will be little changed, rate hawks will be hoping for some sort of indication as to the timing of a benchmark rate increase.
The New Zealand Dollar, meanwhile, is trending higher as the US Dollar softens on trader profit locking. Additional gains can be attributed to tracking the ‘Aussie’ (AUD) uptrend amid improved market sentiment.
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,0.7726,
New Zealand Dollar,,Euro,0.6196,
New Zealand Dollar,,Pound,0.4861,
New Zealand Dollar,,Australian Dollar,0.8971,
US Dollar,,New Zealand Dollar,1.2935,
Euro,,New Zealand Dollar,1.6136,
Pound Sterling,,New Zealand Dollar, 2.0562,
Australian Dollar,,New Zealand Dollar,1.1145,
[/table]
