With influential economic news for New Zealand a little lacking this week, developments in nations like the US, Australia and China are proving to be the driving force behind ‘Kiwi’ fluctuations.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5124 as of 10:00 am GMT
During the local session the New Zealand Dollar advanced on its Australian counterpart as the Reserve Bank of Australia delivered its latest rate decision and policy statement.
Although the central bank held rates at their previous level, as expected by economists, it also stated that the Australian Dollar ‘remains at a high level’.
RBA Governor Glenn Stevens asserted: ‘The board judged that the easier financial conditions now in place will contribute to a strengthening of growth over time, consistent with achieving the inflation target. It decided that the stance of monetary policy remained appropriate for the time being.’
Stevens added that if the ‘Aussie’ continued to deteriorate it would ‘help to foster a rebalancing of growth’ and the South Pacific currency dropped accordingly.
The NZD/GBP exchange rate hit a low of 0.5093
The central bank’s statement allowed the New Zealand Dollar to climb as high as 84.98 Australian cents before a downward correction saw it trading in the region of 84.69 cents.
According to one Sydney-based economist: ‘We’ve got the Kiwi at 87 Australian cents through into next year as the Reserve Bank of New Zealand goes through its tightening call.’
The commodity-driven ‘Kiwi’ also advanced modestly against the US Dollar but was softer against the British Pound.
Data showing that British business confidence has reached its highest level since 2007 supported Sterling this morning, although a UK construction report did show a less rapid rate of expansion in that sector than forecast.
The New Zealand Dollar was largely unaffected by a domestic report showing a 3.7 per cent drop in commodity prices in June. The decline was primarily led by a fall in milk powder, although this was largely counteracted by the ‘Kiwi’s depreciation, meaning that in local currency terms prices actually gained by 0.9 per cent.
Several global economic factors are likely to inspire New Zealand Dollar fluctuations this week, including the Bank of England/European Central Bank rate decisions and Friday’s influential US employment figures.
Current New Zealand Dollar (NZD) Exchange Rates
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The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7811 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5976 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5124 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8489 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2832 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9505 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6733 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1783 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2218 <
(Correct as of 10:00 GMT)
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