Positive UK retail sales data may have boosted the Pound against the New Zealand Dollar during the European session, but the commodity driven asset retained gains against its US peer in the aftermath of the dramatic, last-minute debt ceiling agreement.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5262 as of 11:30 am GMT
Following a nail-biting series of talks Congress finally reached an agreement which would see the partial Federal shutdown end and dissipate default fears.
The result boosted higher-risk assets and the commodity-driven ‘Kiwi’ advanced on the ‘Buck’ and several of its most traded peers.
While the US agreement has delayed rather than combated fiscal issues, the respite in political tension and market volatility will be welcome for the New Zealand Dollar.
As New Zealand’s Prime Minister John Key observed; ‘It is good news that the United States have a temporary reprieve from their issues in terms of their shutdown and renegotiation of their debt ceiling. In reality this only kicks the can down the road until January or February of next year, but it’s still a welcome result. For New Zealand, it is good news. The US is one third of the global economy. We sell a lot of goods and products in the US, and we want them to be strong. It’s hard to be strong when the government is shut down.’
The NZD/GBP exchange rate hit a high of 0.5313 pence per Dollar
The ‘Kiwi’ rallied to a five-month high against the US Dollar during the Australasian session.
A positive increase in New Zealand’s consumer confidence index also lent the nation’s currency support. The sentiment gauge climbed by 2.9 per cent in October after dipping 3.4 per cent the previous month.
In a statement accompanying the figures economist Cameron Bagrie noted; ‘Consumer sentiment remains elevated and consistent with perky sounding trends. Anything around or slightly north of 3 per cent growth would put New Zealand amongst the strongest performers in the OECD next year. It’s been a long time since New Zealand can claim such rock star status.’
The result helped the New Zealand Dollar strengthen against several of its currency rivals, but gains against the Pound were short lived as stronger-than-anticipated UK retail sales data turned Sterling bullish.
Before the weekend Chinese data, including third quarter GDP, and US announcements are most likely to inspire further ‘Kiwi’ volatility.
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: 0.8470 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6211 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5262 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8828 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1834 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9007 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6119 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1333 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1522 <
(Correct as of 11:30 GMT)
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