The New Zealand Dollar is hovering close to a four-year high against its Australian relation after slipping slightly after it tracked the Australian Dollar downwards. The ‘Kiwi’s’ strength comes after the Australian Central Bank surprised the markets and cut its benchmark cash rate to a record low of 2.75%.
The ‘Kiwi’ is expected to recover from its slight losses and once more push upwards as the markets digest the rate cut. Economists expect the cut to increase the attractiveness of New Zealand assets. The expansion of the New Zealand economy is expected to cause the nation’s Reserve Bank to do the opposite of its Aussie neighbour and hike its official cash rate upwards from the current record low of 2.5%.
The New Zealand economy is currently benefitting from stronger commodity prices, an improving fiscal budget and the stimulus generated by the rebuild of the earthquake damaged town of Christchurch.
“The New Zealand economy is doing better than anywhere,” Rankin said. “We are seeing inflows from US, Europe and Japan and now seeing it from Australia.”
At home, the government statistician releases the labour cost index for the first quarter today, expected to hold at the fourth-quarter’s 0.5% pace, while the quarterly employment survey may show private sector wages rose 1%, after a 0.4% decline in the previous three months.
Against the US Dollar the ‘Kiwi’ held at a weekly high against the ‘Greenback’ after the strong jobs figures out of the US helped strengthen commodity prices and growth-linked currencies like the ‘Kiwi’. Against the Euro and Sterling the currency has weakened slightly.
Current New Zealand (NZD) Exchange Rates
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8492
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6493
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5465
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8332
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1774
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8296
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.5400
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2001
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1686
(Correct as if 09:35am GMT)
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