Following on from the less-than-impressive card sales report released earlier in the week, another piece of disappointing domestic data weighed on the New Zealand Dollar overnight.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5176 as of 10:30 am GMT
While the Pound remains under pressure following yesterday’s disappointing UK industrial/manufacturing production and trade balance figures, the ‘Kiwi’ still shed gains against its British rival as New Zealand’s performance of manufacturing index declined.
The survey showed manufacturing activity dropping for a second month in September, largely as a result of falling employment.
Augusts’ reading was negatively revised to 57.1 while September’s level came in at 54.3 – the lowest result for six months.
Although the figure remained above the 50 mark separating growth from contraction, the result is disappointing.
As the Reserve Bank of New Zealand adopted a predominately hawkish stance at its last policy meeting and intimated that rates will be increased in 2014, any negative domestic data could be viewed as hampering New Zealand’s growth and throwing up potential policy-adjustment delays.
The ‘Kiwi’ also softened against the US Dollar as the publication of minutes from the latest Federal Open Market Committee meeting showed that US policy makers believe tapering will occur this year.
The NZD/GBP exchange rate hit a high of 0.5224 pence per Dollar
Additionally, hopes that lawmakers will reach an agreement which could end the US Federal shutdown and quash the risk of a cataclysmic default boosted the ‘Greenback’ at the expense of higher-risk assets like the ‘Kiwi’.
However, the NZD/AUD pairing did enjoy a brief surge as the ‘Aussie’ weakened in response to disappointing Australian employment data. While the advance was trimmed before the close of local trading, currency strategist Jonathan Cavenagh did observe; ‘Full-time jobs growth is only moderate at best and the participation rate declined. That tempers my bullishness on the Aussie’.
Further NZD/GBP movement is likely to occur in the aftermath of the Bank of England’s rate decision while news from the US could continue driving the NZD/USD pairing as the weekend approaches.
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: 0.8242 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6106 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5176 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8751 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2047 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9326 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6363 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1409 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1614 <
(Correct as of 10:30 GMT)
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