Despite having rallied over the weekend; the Pound Sterling to New Zealand Dollar has softened on Monday following unimpressive British manufacturing data.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 1.9824.
Friday of last week saw the Pound to ‘Kiwi’ (NZD) exchange rate bolstered by poor New Zealand economic data publications and positive British data.
The New Zealand Activity Outlook fell from 45.1 to 36.6, and Business Confidence declined to 24.4 from 39.7.
Ordinarily the data described above would have had little influence over ‘Kiwi’ movement, but the lack of other market moving data publications put them into sharper focus.
None of the economic data publications pertaining to New Zealand from last week yielded positive results and the ‘Kiwi’ plunged across the board as a result.
Friday’s British economic data publications told a different story to that of New Zealand’s. The GfK Consumer Confidence Survey showed a surplus figure of 1 in spite of having been forecast to register at -1.
Also the year-on-year Nationwide House Px exceeded expectations having eclipsed the forecast growth of 10.2%, with the actual data showing 11.0% growth.
Sterling was also bolstered on Friday when Scottish Prime Minister Alex Salmond accepted that Scotland would inherit part of the British national debt should they gain independence, which is not a prerequisite of the use of the British currency.
The Pound Sterling to New Zealand Dollar exchange rate has hit a low today of 1.9797.
Monday has seen the Pound to ‘Kiwi’ exchange rate soften after British manufacturing fell below the forecast score of 55.1 to 52.5.
Rob Dobson, senior Markit Economist, describes the latest manufacturing shortfall stating; ‘Growth of the UK manufacturing sector cooled further in August, taking the headline PMI down to a 14-month low of 52.5.
‘The underlying dynamics of the survey also provided a consistent picture of a broad slowdown, with inflows of new business and new export orders weakening and the pace of job creation also easing.
‘Sustaining the upturn is nonetheless still a positive in itself, and it should be noted that the pace of expansion remains solid and a touch above its long-run average.’
The accompanying UK economic data publications were much more positive. Mortgage Approvals were better-than-forecast at 66,600 although they were still lower than the previous figure of 67,100.
Net Consumer Credit increased to 1.1 billion compared to the previous figure of 0.7 billion. Net Lending Sec. on Dwellings increased to 2.3 billion despite having been forecast at 2.0 billion.
With nothing in terms of economic data for New Zealand, ‘Kiwi’ movement is likely to be dictated by foreign currency changes and geopolitical issues. Monday morning saw the New Zealand Dollar soften after Chinese manufacturing fell below the levels of anticipated growth.
The Pound Sterling to New Zealand Dollar exchange rate reached a high today of 1.9862.
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