Although the New Zealand Dollar ended local trade modestly stronger against the Pound and slightly lower against the US Dollar, positive domestic news helped it surge to a fresh five-year high against the ‘Aussie’.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5247 as of 09:55 am GMT
With economists expecting that tomorrow’s manufacturing PMI for China will show that the sector contracted from 50.1 in June to 49.8 in July, the commodity-driven ‘Kiwi’ edged to 79.59 against the US Dollar, taking its three-day drop to 1.6 per cent.
If the predictions for the Chinese data prove accurate it will be the first time since September that manufacturing in the world’s second largest economy has fallen below the 50 mark separating growth from contraction.
However, the New Zealand Dollar held steady against its British counterpart after posting a modest gain in reaction to a disappointing UK BRC shop price index.
The NZD/GBP exchange rate hit a high of 0.5263 pence per Dollar
Meanwhile, the ANZ business outlook index rose from 50.1 to 52.8 – meaning that confidence among New Zealand companies is at a multi-year high as a result of building sector optimism.
This news, in conjunction with a higher forecast for milk prices by Fonterra Cooperative Group, pushed the ‘Kiwi’ to a five-year high against its Australian rival.
In response to the New Zealand Dollar’s movement currency strategist Mike Jones stated: ‘Most of the attention was on the relentless upward march of the Kiwi/Aussie cross. Fonterra’s upward revision to its milk price, and the upbeat ANZ business confidence survey only added fuel to the fire, and a test of 90 Australian cents now looks possible.’
Although the Federal Open Market Committee’s policy announcement is expected to drive market volatility in the hours ahead, the New Zealand Dollar could also fluctuate in response to Chinese and Australian data.
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: 0.7990 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6017 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5247 >
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: 1.2542 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9060 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6635 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1302 <
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2178 <
(Correct as of 09:55 GMT)
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