The New Zealand Dollar is holding close to a two-week high against the US Dollar after manufacturing data out of China proved to not be as bad as investors had been fearing, and as speculation mounts that the US Federal Reserve will choose to maintain its monetary policy of low interest rates and money printing.
The Chinese manufacturing purchasing managers index declined to 50.6 last month, a figure that keep the sector in expansion and was just below economist expectations of a figure of 50.7. Traders had got a little nervous after the unofficial flash HSBC Purchasing Managers’ Index fell to 50.5 in April when it was released last week.
With the China data out of the way the market is now turning its attention to the USA where Wednesday’s meeting of the Federal Open Market Committee in Washington is expected to show that the Fed will choose to maintain its quantitative easing programme amidst deteriorating economic data for the US.
“We’re going to have to see what the Fed says,” said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. “The kiwi’s going nowhere fast – it’s between 83.50 US cents and 86.50 cents in the greater scheme of things.”
The European Central Bank is expected to review its interest rates on Thursday and expectations are mounting that it will opt to cut them by a quarter-point to a new record low of 0.5% in a bid to revive the Eurozone economy. Against the Euro the ‘Kiwi’ fell slightly.
Current New Zealand Dollar (NZD) Exchange Rates
Correct as of 09:32am
The Euro to New Zealand Dollar (EUR/NZD) exchange rate is trading at 1.5395
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is trading at 1.8152
The US Dollar to New Zealand Dollar (USD/NZD) exchange rate is trading at 1.1677
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is trading at 1.2091
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