While the Pound remains on the back foot following last week’s disappointing UK news, the New Zealand Dollar broadly strengthened during the Australasian session as climbing Chinese stocks and positive domestic data gave the ‘Kiwi’ a boost.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5234 as of 10:30 am GMT
The ‘Kiwi’ advanced on the majority of its most traded peers and extended gains against the ‘Aussie’ as the Real Estate Institute of New Zealand (REINZ) housing report showed home prices jumped to a record high in September.
Prices were up 19.0 per cent last month, year-on-year, following a gain of 8.5 per cent in August.
The number of homes sold also increased, from 6,548 to 6,720.
In a statement published with the report REINZ chief executive Helen O’Sullivan commented; ‘Real estate sales volumes have been strong in the lead up to the introduction of loan-to-value restrictions by the Reserve Bank, with sales up over 19 per cent compared to September last year.’
The NZD/GBP exchange rate hit a high of 0.5253 pence per Dollar
Rallying Asian stocks also aided the South Pacific currency’s advance, and the ‘Kiwi’ was able to surge against the ‘Aussie’ as Australian home loans fell by more-than-expected in August.
But while the NZD/GBP pairing strengthened, the NZD/USD pairing was fluctuating as investors focused on the upcoming October 17th debt ceiling deadline.
As senior trader Michael Johnston stated; ‘It’s trading in a fairly tight range for the Kiwi – there’s a mild upside bias given how close to the crunch-time for the debt ceiling. The markets think sanity will prevail.’
With US markets closed for a national holiday, currency volatility may be limited.
However, tomorrow’s Reserve Bank of Australia policy meeting minutes, UK inflation data and New Zealand inflation figures are all likely to impact the ‘Kiwi’ as the week progresses.
While the New Zealand Dollar is currently adopting a fairly strong position against the Pound, if this week’s retail sales and employment figures for the UK show the improvement expected, recent gains could be reversed.
Current New Zealand Dollar (NZD) Exchange Rates:
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The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8362 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6172 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5234 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8837 >
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1988 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9102 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6245 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1320 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1601 <
(Correct as of 10:30 GMT)
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