During Australasian trading the ‘Kiwi’ was able to advance on the majority of its peers as local and foreign data lent the commodity-driven asset support.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5011 as of 10:35 am GMT
The South Pacific currency rallied against the US Dollar as New Zealand’s terms of trade (calculated as export prices relative to import prices) advanced to an 18-month high of 4.9 per cent in the second quarter, significantly more than the 3.8 per cent gain forecast.
The first quarter figure was also upwardly revised to 4.2 per cent and the New Zealand Dollar headed towards its biggest gain against its US counterpart for five weeks.
Additional New Zealand Dollar gains were enabled by a report showing that manufacturing in China hit a 16-month high of 50.1 in August. This return to growth is good news for both New Zealand and Australia’s trade prospects, and the currencies of both nations were supported as a result.
As Markit economist Hongbin Qu observed; ‘The final reading of August’s HSBC China manufacturing PMI recovered to 50.1 […] This implies that growth in China’s manufacturing sector has started to stabilise on the back of a modest rebound of new orders output. This was mainly driven by the initial filtering through of recent stimulus measures and companies’ restocking activities. We could expect some upside surprises to China’s growth in the coming months.’
The NZD/GBP exchange rate hit a low of 0.4965 pence per Dollar
However, with the ‘Aussie’ being boosted by better-than-forecast local building approvals data the New Zealand Dollar slid against its neighbouring rival.
Gains against the Pound were also limited as the British asset was supported by positive UK news, including surprisingly strong manufacturing data.
This week economic news for New Zealand Dollar is a little light, so movement in the South Pacific currency is likely to be driven by foreign developments, such as this week’s UK construction/services data, US manufacturing report and Reserve Bank of Australia rate decision.
Of course, Syria will also remain heavily in the spotlight this week.
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: 0.7809 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5913 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5011 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8691 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2801 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9962 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6918 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1497 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2204 <
(Correct as of 10:35 GMT)
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