Last week the ‘Kiwi’ was able to buck its recent bearish trend and strengthen against the US Dollar and positive domestic news ensured that the South Pacific currency was able to extend gains during the local session.
The New Zealand Dollar exchange rate was trading in the region of 0.8080 against the US Dollar as of 10:10 am GMT
After a gauge of consumer confidence compiled by Westpac Banking Group showed that consumer confidence advanced from 110.8 in the first quarter to 116.6 (and a three year high) in the second, the New Zealand Dollar advanced on several of its most traded peers.
The last time the gauge was so high was in June 2010.
New Zealand’s Performance of Services Index was shown to have held at the previous month’s level of 56.2 in May.
The New Zealand Dollar hit 80.94 US Cents
As well as gaining on the US Dollar the ‘Kiwi’ achieved its strongest level against its Australian counterpart since last month after the consumer confidence data was published.
The ‘Kiwi’ is also being supported by the expectation that Wednesday’s domestic GDP figures will show that New Zealand’s economy expanded by 0.6 in the first three months of this year.
According to economist Chris Tennent-Brown: ‘The recovery in the Kiwi might continue this week if the data comes in stronger than expected’.
The AUD/NZD paring may experience additional movement after the Reserve Bank of Australia releases minutes from last week’s meeting. One of the primary focuses of the minutes is expected to be concerns regarding the exchange rate and the ‘overvalued’ Aussie.
Also likely to inspire fluctuations in the New Zealand Dollar this week is the Federal Reserve’s highly anticipated policy meeting.
In recent weeks speculation regarding when the US central bank will begin to pare stimulus has caused significant market volatility, and as one strategist notes: ‘If they come out and say they’re definitely going to start winding back stimulus, then that’s bullish for the US Dollar. It’ll weigh on the rest of the risk space.’
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: 0.8080 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6066 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5141 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8413 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2387 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9443 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6504 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1887 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2222 <
(Correct as of 10:10 GMT)
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