The New Zealand Dollar has strengthened against the majority of its major peers as economists await the release of data that is expected to show that new building permits soared to a five-year high. However, the week ahead is fraught with risk for the currency, and depending on factors from Europe and the USA the ‘Kiwi’ could make a retreat.
The currency’s rise came after the New Zealand Central Bank announced that a possible housing boom could force it to raise interest rates. The news caused the ‘Kiwi’ to maintain its longest stretch of weekly gains in two-years against its Australian relation.
The gains come at the start of a week that could shape up to be risk-heavy with Central bank meetings and US employment figures all threatening to disappoint investors and send them seeking shelter in safe-haven currencies. The Currency suffered some losses last week after the US posted a disappointing GDP figure.
“It’ll probably be a fairly dull first-half of the week, though it livens up in the second half with the European Central Bank on Thursday and the Federal Open Market Committee on Wednesday,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland.”The Kiwi’s just above the middle of its range” with support at 83 US cents and resistance just below 87 cents, he said.
Tomorrow sees the release of New Zealand’s latest business confidence data which will give an indication as to how well the country’s economy is doing.
Current New Zealand Dollar (NZD) Exchange Rates
The Euro to New Zealand Dollar (EUR/NZD) exchange rate is trading at 1.5344
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is trading at 1.8199
The US Dollar to New Zealand Dollar (USD/NZD) exchange rate is trading at 1.1713
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is trading at 1.2112
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