After fluctuating in response to a surprising decline in New Zealand’s card spending levels, the NZD/GBP pairing advanced as poor UK data lessened the Pound’s appeal.
The New Zealand Dollar to Pound Sterling exchange rate was trading in the region of 0.5165 as of 10:30 am GMT
While the New Zealand Dollar was lifted slightly ahead of the publication of domestic retail card spending figures, with the report disappointing expectations the ‘Kiwi’ dipped against several of its most traded rivals before the close of Australasian trading.
Economists expected card spending to advance by 0.3 per cent in September, following a climb of 0.8 per cent in August, but the level actually dropped for the first time since March.
The 0.8 per cent fall was the most significant decline recorded for over a year.
The report also showed that core retail sales fell by 1.0 per cent, almost wiping out the previous month’s 1.1 per cent gain.
In response to the results senior economist Felix Delbruck stated; ‘Overall, the electronic cards data for the last three months are pointing to a slower pace of retail spending in the September quarter than in June, though underlying indicators of spending appetites, such as consumer confidence, remain at a fairly high level. Our forecast for retail volume growth in the September quarter is now 0.7 per cent, compared to 1.7 per cent in the June quarter.’
The NZD/GBP exchange rate hit a high of 0.5190 pence per Dollar
The ‘Kiwi’ came under additional pressure as US political concerns showed no sign of abating and the debt ceiling deadline crept closer.
Expectations that tomorrow’s Australian employment data will show that the nation added 15,000 positions last month also boosted the ‘Aussie’ at the expense of the neighbouring ‘Kiwi’ and the NZD/AUD pairing dipped.
However, with UK industrial/manufacturing production and trade balance data all failing to meet forecasts Sterling broadly softened and the New Zealand Dollar was able to climb.
Although today’s NIESR GDP estimate for the UK is likely to exert additional influence over the pairing, economists will also be looking to New Zealand’s performance of manufacturing index for September – due out at 22:30 GMT.
US developments remain a key driver of market movement.
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: 0.8287 >
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6126 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5165 >
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8795 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2067 <
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9249 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6356 <
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1391 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1640 <
(Correct as of 10:30 GMT)
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