Although New Zealand’s economic outlook was boosted during local trade as business confidence was shown to have jumped from 32.3 to 41.8 in May, the nation’s currency is still in line to record a significant monthly decline against the US Dollar.
The New Zealand Dollar exchange rate was trading in the region of 0.8028 against the US Dollar as of 09:35 am GMT
Over recent weeks speculation that the Federal Reserve will begin to ease up on its current level of monetary stimulus has pushed investors towards the US Dollar, a factor which is largely responsible for the ‘Kiwi’s 5.5 per cent monthly slide.
The currency was also knocked by a statement issued yesterday by Reserve Bank of New Zealand Governor Graeme Wheeler.
Wheeler reasserted the central bank’s commitment to intervening in the currency market in order to lower an ‘overvalued’ New Zealand Dollar, with data also revealing that the RBNZ sold a net 256 million Dollars last month.
As one forex expert noted: ‘It’s not a shock and awe tactic – you might see a little bit here and a little bit there, but no one knew about it until the Reserve Bank said it was intervening.’
However, the ‘Kiwi’ did gain modestly on its US counterpart during local trade as the ‘Greenback’ turned bearish following slightly disappointing US growth figures, while the South Pacific currency was boosted by positive domestic data.
As well as a significant jump in the South Pacific nation’s business confidence, a second report showed that terms of trade improved in the first quarter of this year, with a 4.1 per cent advance which smashed economist’s expectations for a 0.9 per cent gain.
An absence of major economic home-grown news in the week ahead means ‘Kiwi’ movement is most likely to occur in response to global economic developments.
Non-farm payroll figures for the US – due out on Friday at 13:30 GMT – will be of particular 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: 0.8028 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6185 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5281 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8395 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2375 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.8940 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6109 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1933 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2003 <
(Correct as of 09:35 GMT)
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