Overnight the New Zealand Dollar rallied against its rivals and posted gains against peers like the Pound, Euro and US Dollar.
The commodity-driven asset was supported as a domestic report showed that business confidence in New Zealand soared to a 20-year high in the fourth quarter of last year, with the NZIER measure advancing from 38 to 52.
According to an industry expert the data points to ‘New Zealand’s economic growth gaining momentum over the coming year. One encouraging aspect has been the continued improvement in profitability.’
Separate data showed that retail card spending climbed by 0.6 per cent in December following a gain of 0.6 per cent in November.
The result was slightly shy of the 1.0 per cent advance estimated, but overall card spending was up 1.0 per cent month-on-month.
The encouraging reports increased speculation surrounding the likelihood of the Reserve Bank of New Zealand raising interest rates this year and boosted the ‘Kiwi’.
As Auckland-based head of forex trading Dan Bell observed; ‘There are plenty of reasons to be reasonably bullish about the Kiwi at the moment. We’re going to have one of the only central banks in the world raising rates.’
However, the New Zealand Dollar later shed gains against the Pound and the British currency advanced during European trading.
News that the pace of UK inflation slowed in December, hitting the 2 per cent target outlined by the BoE for the first time since 2010, saw Sterling strengthen and recoup previous losses against the New Zealand Dollar.
As the week continues further influential economic data for New Zealand is in short supply, but GBP/NZD movement could be affected by China’s foreign direct investment report, New Zealand’s house sales figure and UK retail sales data.
Current New Zealand Dollar (NZD) Exchange Rates:
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.8393 ,
New Zealand Dollar,,Euro,0.6132 ,
New Zealand Dollar,,Australian Dollar,0.9275 ,
New Zealand Dollar,,Pound Sterling,0.5111 ,
US Dollar,,New Zealand Dollar,1.1923 ,
Euro,,New Zealand Dollar,1.6285 ,
Australian Dollar,,New Zealand Dollar,1.0737 ,
Pound Sterling,,New Zealand Dollar,1.9538 ,
[/table]
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