During local trade the New Zealand Dollar was able to advance modestly against the US Dollar, despite the expectation that today’s US retail sales figures will show a gain of 0.7 per cent. The South Pacific asset also climbed against the Pound ahead of this week’s big UK news.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5174 as of 10:00 am GMT
The commodity-driven ‘Kiwi’ gained on the ‘Greenback’ but declined against its Australian counterpart after China published its growth report for the second quarter.
According to the data China’s economy expanded by 7.5 per cent in the second quarter of the year, as expected by economists.
The result allowed the ‘Kiwi’ to recoup the slight losses sustained after New Zealand’s performance of services index declined.
The NZD/GBP exchange rate hit a low of 0.5137 pence per Dollar
The BNZ Business New Zealand Performance of Services Index dropped from May’s negatively revised 56 to 55 in June. However, ‘Kiwi’ declines were limited as this is still the best June result for six years and the figure remains above the fifty mark separating growth from expansion.
In response to the June PSI economist Doug Steel observed that it was ‘maybe not a gold medal performance, but surely a solid silver. A new orders index at close to 60 is getting up there and bodes well for expansion ahead.’
New orders climbed to 59.7 in June.
Sales also advanced to 57.1 per cent.
News likely to trigger fluctuations in the NZD/GBP and NZD/USD pairings this week include inflation figures for New Zealand, the US and the UK and the publication of minutes from the Bank of England/Reserve Bank of Australia’s latest policy meetings.
As industry expert Alex Hills states: ‘US retail sales [today] are the big number – that’s it, that’ll shake the cage. Our bias for the Kiwi is generally lower.’
Any references to tapering US easing will also be of significant interest.
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: 0.7810 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5956 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5174 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8590 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2860 –
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9313 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6721 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1654 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2373 >
(Correct as of 10:00 GMT)
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