Following on from last week’s slide, the ‘Kiwi’ weakened modestly against the US Dollar during the local session, briefly touching a year low of 77.01 US Cents.
The New Zealand Dollar exchange rate was trading in the region of 0.7704 against the US Dollar as of 09:50 am GMT
Commodity-driven currencies like the New Zealand Dollar experienced extreme volatility last week as the market reacted to the expectation that the US Federal Reserve could soon begin reining in its extensive levels of quantitative easing.
Now, with several pieces of positive US data due for release this week, industry experts are speculating that the appeal of the ‘Kiwi’ could continue to weaken, perhaps causing the South Pacific currency to drop as low as 75 US cents.
As currency strategist Dan Bell notes: ‘The Kiwi/US continues to have more downside risk as the liquidation in high-yielding carry trade currencies continues.’
The New Zealand Dollar is forecast to trade in the region of 75-80 US cents
The latest credit card spending data for New Zealand had little impact on the nation’s currency.
According to a report released during the local session, the level of credit card spending in New Zealand declined by 0.6 per cent last month. This follows the gain of 0.4 per cent recorded in April.
However, separate data compiled by Statistics New Zealand revealed a 0.5 per cent jump in total spending on electronic cards – led by increased card spending on purchases of food, drink and fuel.
The next piece of particularly significant economic news for New Zealand, trade balance figures, is due out on Wednesday at 23:45 GMT.
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: 0.7704 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5926 >
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5015 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8425 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2920 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9933 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7000 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1889 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2302 <
(Correct as of 09:50 GMT)
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