The New Zealand Dollar is trading lower against Sterling and the Euro and is expected to make further declines throughout the week as the UK and Eurozone economies continue to show signs of improvement.
According to economists, this week will see the Euro-zone economy post growth of 0.2% for the second quarter. If the data does come in as expected then it will mark the first time the struggling region has posted growth since 2011 and will end the longest recession in the Eurozone’s 14-year history. The data is due to be released on August the 14th, the same day the latest UK employment data is released.
The UK economy is showing signs that it is on track to make a sustained recovery and the employment data is predicted to show that unemployment in the country remained unchanged at 7.8%.
“The European and UK recovery seems to be here, if they’re good economic numbers, we may have seen the peak on the Kiwi/Euro and Kiwi/Sterling crosses” said Mike Jones, currency strategist at the Bank of New Zealand in Wellington.
Also weighing upon the ‘Kiwi’ were comments made by New Zealand Prime Minister John Key who said that the recent food scare that prompted China and Russia to ban imports of milk powder made by the Fonterra Cooperative Group has affected the entire export industry of the country.
Key said that the incident is hard to quantify as it affected all of New Zealand’s exports around the world, rather than just dairy sales to China. In a separate interview the chief of Fonterra Theo Spierings said that it could cost the country tens of millions of New Zealand Dollars.
The main pieces of data out this week for the ‘Kiwi’ are the NAB business confidence survey for Australia which is due on Tuesday and New Zealand’s second quarter retail sales figures out on the same day.
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: 0.7997 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6013 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5170 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8737 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2503 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9339 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6630 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1444 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2128 <
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