New Zealand Dollar (NZD) Trending Lower, AUD Bolstered after RBA
On Tuesday the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was struggling while the Australian Dollar to New Zealand Dollar (AUD/NZD) pairing was trending in a stronger position.
The GBP/NZD exchange rate pushed higher on Monday amid a lack of economic data for New Zealand and an encouraging UK Manufacturing report.
The AUD/NZD exchange rate, meanwhile, came under a little pressure as Australian Building Approvals plummeted and Chinese manufacturing and non-manufacturing figures fell short.
During the Australasian session the situation changed as the ‘Aussie’ rallied across the board.
The Australian Dollar surged against its New Zealand counterpart after Australian retail sales registered an unexpected surge in September and the Reserve Bank of Australia (RBA) adapted its rhetoric on the subject of the strength of the local currency.
However, according to one industry expert, the RBA is ‘still talking about the ‘Aussie’ currency as still too high, and was very similar to what the RBNZ said, in that their respective commodity prices have fallen. The ‘Kiwi’s range-trading with a downward bias.’
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate hit a high of 1.1275.
Pound Sterling (GBP) Fluctuates after Construction Report, Growth Forecasts
Meanwhile, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate shed almost 0.4% on Tuesday following the previous day’s 2 cent gain as the UK’s Markit Construction PMI intimated that the sector’s bullish run might be over.
The gauge of construction eased to 61.4 in October from 64.2 in September.
However, Pound losses were limited as the European Commission positively revised its UK growth forecast for both 2014 and 2015.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trading in the region of 2.0592.
Both the AUD/NZD and GBP/NZD exchange rates can be expected to fluctuate after New Zealand releases its employment figures for the third quarter.
If the report meets or exceeds forecasts the New Zealand Dollar could gain, but a disappointing result would undermine demand for the South Pacific asset.
UPDATE
New Zealand Unemployment Drops to 5.5 Year Low
Overnight the Pound Sterling to New Zealand Dollar (GBP/NZD) and Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rates declined as the ‘Kiwi’ was bolstered by impressive domestic employment stats.
The level of employment in New Zealand was shown to have increased by 0.8% in the third quarter of the year, quarter-on-quarter, smashing estimates for a 0.6% gain. This took the unemployment rate from 5.6% to a five and a half year low of 5.4%.
However, New Zealand Dollar gains were limited as China’s Services and Composite PMI came in below forecast levels.
The GBP/NZD exchange rate could experience additional movement today as a result of the UK Services PMI.
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,0.7737,
New Zealand Dollar,,Euro,0.6193,
New Zealand Dollar,,Australian Dollar,0.8985,
New Zealand Dollar,,Pound Sterling,0.4842,
US Dollar,,New Zealand Dollar,1.2942,
Euro,,New Zealand Dollar,1.6185,
Australian Dollar,,New Zealand Dollar,1.1121,
Pound Sterling,,New Zealand Dollar,2.0618,
[/table]
