The New Zealand Dollar fell against the Pound on Monday after a magnitude 6.3 earthquake rattled the country’s north island.
The quake struck in the afternoon New Zealand time and concerns were fairly high that significant damage had occurred which spurred a knee jerk reaction in the currency market. Luckily there were no reported injuries and only light damage. The US Geological Survey reported that the quake’s epicentre was 71 miles to the northeast of New Zealand’s capital city of Wellington.
Looking ahead to the rest of the week the ‘Kiwi’ is looking likely to resume its downward trend against the Pound and the GBP/NZD pairing could reach the key 2.00 level. Investors will be paying attention to local inflation data which is due later in today’s session.
The currency came under more pressure following the publication of the nation’s latest house price index report which showed that prices declined by -1.0% on a monthly basis compared to the previous figure of a 1.2% increase.
A separate report is expected to show that New Zealand’s consumer’s price index fell by 0.1% in the final three months of 2013, for an annual rate of 1.5%.
“CPI looms large – we know it’s a key figure, especially with all the talk being about interest rates at the moment, it might impact on the tone from Wheeler at the end of the month,” said a New Zealand based economist.
New Zealand Exchange (NZD) Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.8253 ,
New Zealand Dollar,,British Pound,0.5018 ,
New Zealand Dollar,,Euro,0.6086 ,
New Zealand Dollar,,Australian Dollar,0.9367 ,
[/table]
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