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Foreign Currency Forecast for New Zealand Dollar – ‘Kiwi’ gains on pricier milk

New Zealand Dollars

The New Zealand Dollar exchange rate was trading in the region of 0.8413 against the US Dollar as of 12:35 pm

With the Australian Dollar broadly softening following a disappointing retail sales figure for the South Pacific nation the New Zealand Dollar was able to brush its highest level against the ‘Aussie’ since mid 2010.

The ‘Kiwi’s advance was aided by the news that the price of whole-milk powder (one of New Zealand’s primary exports) increased in January.

According to Auckland-based Fonterra Cooperative Group Ltd, the quantity of milk powder scheduled for April delivery increased by 5.8 per cent whilst the near-tem contract for the key product was 3,446 New Zealand Dollars a metric ton, the highest price achieved since mid-October last year.

New Zealand’s currency was further bolstered by economist’s predictions for this evening’s employment data for the smaller nation.

Industry experts widely expect that New Zealand’s statistics bureau will announce that the country’s jobless rate declined in the fourth quarter, dropping from 7.3 per cent to 7.1 per cent.

Tomorrow’s employment data for Australia, including employment rate and employment change, could also trigger ‘Kiwi’ movement.

As one industry expert commented: ‘If the Australian labour force data tomorrow disappoints, we would expect market expectations for next month’s rate cut to lift a little. We expect the New Zealand Dollar to outperform the Aussie.’

The likelihood of the Reserve Bank of Australia cutting rates at their March meeting is increasing with every disappointing Australian data release. If the unemployment figures fail to impress the odds will rise again and the ‘Aussie’ could continue to fall against its competitors.

Current New Zealand Dollar Exchange Rates

The New Zealand Dollar to Euro exchange rate is currently trading at 0.6221

The New Zealand Dollar to Pound Sterling exchange rate is currently trading at 0.5387

The New Zealand Dollar to US Dollar exchange rate is currently trading at 0.8413

The New Zealand Dollar to Australian Dollar exchange rate is currently trading at 0.8160

The New Zealand Dollar to Canadian Dollar exchange rate is currently trading at 0.8421    

The New Zealand Dollar to Emirati Dirham exchange rate is currently trading at 3.0783

The New Zealand Dollar to Swiss Franc is currently trading at 0.7678

The New Zealand Dollar to Japanese Yen exchange rate is currently trading at 78.8308

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