The New Zealand Dollar continued its upward momentum against the Pound and other major peers on Tuesday as the currency tracked its Australian relation upwards after the Reserve Bank of Australia kept interest rates unchanged at 2.5%.
The ‘Kiwi’ is also finding support from investor expectations that tonight’s New Zealand unemployment data will show that the number of people out of work in the smaller South Pacific nation fell to the lowest level in four years.
The currency pushed higher today after the Australian Central Bank kept interest rates steady at 2.5% and said that there had been some improvement in the Australian labour market.
“It was slightly upbeat on the economy, noticing an improvement in the labour market, but said it would be some time before the unemployment rate fell substantially. On the Kiwi/Aussie cross, the recent trend is a resumption of the old trend in that the cross goes higher and I don’t think this RBA statement was strong enough in the positive direction to disturb that,” said a market strategist from Westpac Banking Corp based in Auckland.
The ‘Kiwi’ could also see movement later in the session due to a dairy auction on Fonterra Cooperative Groups Global Dairy Trade platform.
Investors will be looking to see if dairy prices will continue to fall.
Also due later in today’s session is a speech due to be given by Reserve Bank of New Zealand Governor Graeme Wheeler.
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,0.8723 ,
New Zealand Dollar,, Pound Sterling,0.5152 ,
New Zealand Dollar,,Euro,0.6266 ,
New Zealand Dollar,,Australian Dollar,0.9376 ,
Euro,, New Zealand Dollar ,1.5961 ,
US Dollar,, New Zealand Dollar ,1.1467 ,
Australian Dollar,, New Zealand Dollar ,1.0663 ,
Pound Sterling,, New Zealand Dollar ,1.9414 ,
[/table]
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