The GBP to NZD exchange rate was little changed on Tuesday following a day of steady gains on Monday.
The Pound remains supported from expectations that the Bank of England will be the first major Central Bank to increase interest rates.
A run of positive data releases has shown that the UK economic recovery is broadening and that the economy is finally close to reaching its pre-2008 peak.
Investors are expecting today’s UK Markit/CIPS Manufacturing purchasing manager’s index to come in positively.
Against the US Dollar the ‘Kiwi’ managed to edge higher due to release of a positive Chinese manufacturing report which supported demand for the export and currency based currency.
With China being New Zealand’s second biggest trading partner a positive report from the former often benefits the latter.
The currency found support after a report showed that China’s official manufacturing PMI climbed to its highest level in six-months in June.
The index advanced from May’s 50.8 to 51.0 this month.
A separate report compiled by HSBC showed that its PMI came in at 50.7, weaker than the preliminary reading of 50.8 but higher than the previous month’s figure of 49.4.
In a PMI any figure above 50 indicates expansion, whilst one below indicates contraction.
Against its Australian relation the ‘Kiwi’ weakened after the Reserve Bank of Australia kept its benchmark interest rate on hold at a record level of 2.5%.
The decision was widely expected by economists.
UPDATED: 09:55 GMT 02 July, 2014
GBP to NZD Climbs 0.1%
In a quiet news week for New Zealand, movement in the ‘Kiwi’ has largely been driven by global economic developments.
Overnight the New Zealand Dollar fluctuated as Australia’s trade data disappointed hopes and the price of dairy (a major New Zealand export) fell.
During the European session the GBP to NZD exchange rate was able to move modestly higher thanks to the UK’s better-than-forecast Construction PMI.
Chinese reports could inspire further New Zealand Dollar movement as the week continues.
Later today US Factory Orders figures may cause market movement.
New Zealand Dollar (NZD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.8758 ,
New Zealand Dollar,, Pound Sterling,0.5123 ,
New Zealand Dollar,,Euro,0.6404 ,
New Zealand Dollar,,Australian Dollar,0.9273 ,
Euro,, New Zealand Dollar ,1.5602 ,
US Dollar,, New Zealand Dollar ,1.1409 ,
Australian Dollar,, New Zealand Dollar ,1.0795 ,
Pound Sterling,, New Zealand Dollar ,1.9532 ,
[/table]
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