UPDATE
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced by around 0.5% on Tuesday afternoon.
The appreciation can be linked to better-than-anticipated British construction output. In addition, the ‘Kiwi’ (NZD) has seen muted demand amid concerns that the forthcoming national Dairy Auction will see milk prices fall further.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.1922.
Yesterday…
GBP/NZD Conversion Rate Predicted to Rally despite Mixed British Data
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate surged by around 1.4% on Monday afternoon.
Despite the fact that British economic data produced a mixed-bag of results today, the Pound strengthened versus nearly all of its currency rivals. The initial uptrend can be linked to pundits taking advantage of the Pound’s low trade weight after a disappointing end to 2015 caused the British asset to slump versus its peers.
Additionally, concerning manufacturing data from China has weighed on demand for commodity-driven currencies like the Australian and New Zealand Dollars.
In terms of today’s data, November’s Net Lending Securities on Dwellings, Net Consumer Credit and Mortgage Approvals all bettered the respective market consensuses. However, December’s UK Manufacturing PMI failed to meet with expectations of a rise from 52.5 to 52.8, with the actual result dropping to 51.9.
In response to the British manufacturing data, David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply stated; ‘A muted end to the year with more subdued levels of production and the weakest level of expansion reported for three months. Any rise in production was attributed to new orders from domestic but also export markets as the sector saw an increase in demand from the States, Singapore and China, as well as Europe. Stock levels were reduced for the tenth successive month as firms made efforts to improve on work backlogs.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.1809.
NZD/GBP Conversion Rate Predicted to Hold Losses after Chinese Manufacturing Disappointed
A combination of rising tensions in the Middle East and disappointing Chinese economic data has caused trader risk-appetite to dampen considerably on Monday. This weighed heavily on demand for the ‘Kiwi’ (NZD) as a high-yielding, risk-correlated asset. December’s Chinese Manufacturing PMI was predicted to show an easing in the rate of contraction from 48.6 to 48.9, but the actual result saw contraction widen to 48.2. This is well below the 50 mark which separates growth from contraction. ‘Welcome to 2016, though you’d be forgiven for thinking the markets were back in August 2015 with China causing some early New Year issues,’ said Spreadex analyst Connor Campbell.
‘The combination of a disappointing manufacturing PMI and a positive surprise in the non-manufacturing PMI highlights the on-going rebalancing of the Chinese economy from investment and export-led growth to more consumer-driven and service sector-driven growth,’ chimed in analysts from Danske Bank.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low of 2.1560 during Monday’s European session.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast: Dairy Auction to Provoke Significant Volatility
The Australasian session is likely to see significant Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate volatility with the publication of New Zealand’s Dairy Auction Average Winning Price MT, and the Dairy Auction Whole Milk Powder MT. The British asset will see changes in response to the UK Construction PMI which will be published during Tuesday’s London session.
Risk appetite is also likely to play a significant role in the GBP/NZD conversion rate with geopolitical tensions and weak commodity prices causing heightened safe-haven demand. Any news regarding the forthcoming referendum on the UK’s European Union membership is also likely to stimulate changes for the British asset.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate climbed to a high of 2.1926 during Monday’s European session.
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