With comparatively upbeat domestic news, an improving global outlook and a hawkish Reserve Bank of New Zealand all supporting the ‘Kiwi’, the commodity driven asset has strengthened over the last few months.
The asset’s bullish behaviour has prompted cautionary comments from policy makers before, but any tempering affect the remarks may have had has been limited or short-lived.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5153 as of 10:30 am GMT
That being said, the New Zealand Dollar did soften against the Pound, Euro and ‘Greenback’ overnight as the nation’s Finance Minister Bill English once more made the case for a weaker ‘Kiwi’.
Following the publication of the Treasury’s financial statements English asserted; ‘The exchange rate, in our view, is still too high. It remains a headwind for the export sector.’
English also commented on the potential economic damage the nation’s thriving housing market could cause, but intimated that with the nation’s budget deficit contracting by faster-than-expected a surplus will be recorded by 2015.
The NZD/GBP exchange rate hit a low of 0.5151 pence per Dollar
In response to tax revenue and annual expenses figures English said; ‘The government’s approach has been validated by today’s result. It reflects a more resilient economy where government, households and business have patiently adapted to changing conditions.’
The ‘Kiwi’ was also feeling the pressure as the federal shutdown in the US continues for a seventh day and the deadline for reaching the debt ceiling approaches.
Although much of market movement will be driven by US developments in the days ahead, New Zealand data to watch out for this week includes the nation’s card spending figures, house price report, business performance of manufacturing index and food price report. Australian employment data is also likely to have an impact on the ‘Kiwi’.
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: 0.8275 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6089 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5153 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8817 –
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2067 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9420 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6403 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1362 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1676 >
(Correct as of 10:30 GMT)
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