The New Zealand Dollar is trading lower against the Pound and fell to two-week lows against the US Dollar as concerns over the shutdown of the US Federal government continuing to pile pressure onto the perceived riskier commodity based currencies.
The ‘Kiwi’ is trading close to a one-month low against Sterling due to be weighed down by its close relation of the Australian Dollar.
“The Kiwi is getting a bit punished today which is odd because it’s going against the data. High commodity prices and a strong overnight dairy auction should have supported the ‘Kiwi’ but what we are seeing is Aussie-Kiwi flows continuing on from Tuesday’s RBA meeting and strong retail sales,” said Sam Tuck, senior Foreign exchange manager for ANZ.
The New Zealand Dollar was down against its ‘Aussie’ relation despite data out of the bigger Oceanic nations showed that Australia’s trade deficit widened and building approvals fell more-than-expected.
Adding to the sense of risk aversion in the markets is the ongoing political uncertainty in Europe; Italian Prime Minister Enrico Letta is due to face a vote of confidence later in the session. Odds are higher that Letta’s fragile government will survive the vote but investors are cautious that political uncertainty is likely to remain.
Another cause for the ‘Kiwi’s’ weakness were comments made by a Central Bank official who said that the nation’s neutral interest rate has fallen.
Current New Zealand Dollar (NZD) Exchange Rates:
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8214
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5068
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2174
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9728
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6475
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1372
(Correct as of 09:35 am GMT)
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