During European trading the Pound to New Zealand Dollar (GBP/NZD) exchange rate shed 0.15%.
Last week the appeal of the ‘Kiwi’ was diminished somewhat as the price of dairy produce, New Zealand’s main export, fell and US employment figures surprised to the upside – triggering a fresh bout of speculation regarding the timeline for the Federal Reserve increasing interest rates.
Domestic data was lacking over the course of last week, so the New Zealand Dollar edged lower against peers like Sterling and the ‘Greenback’ after this influential report was published.
As forex trader Garry Dean observes; ‘Until that payrolls number came out the sense was that the Fed was likely to maintain interest rates at a very low level, and have an extended period of low interest rates. The market is feeling that the pressure is going to start to come on Janet Yellen, she might need to satisfy the market and start looking at bringing forward interest rate rises, which is why, of course, the US Dollar has begun to rise.’
The New Zealand Dollar also came under modest pressure overnight as a domestic report showed that national house price growth slowed in June.
Quotable Value (QV) data showed that house prices were up 8% on the year in June, a slightly smaller annual increase than the 8.2% gain recorded in May.
In the three months to June house prices were up 2.1%. This followed a 0.7% climb in the three months to May.
However, while the New Zealand Dollar was a little softer against its US counterpart (trending close to a 2-week low), the Pound to New Zealand Dollar exchange rate lost some ground on Monday.
Ahead of the highly-anticipated Bank of England policy meeting, the Pound was holding steady against several of its main currency counterparts.
Today’s UK Lloyds Employment Confidence measure had little-impact on the Pound.
If tomorrow’s UK Industrial Production and Manufacturing Production figures show improvement, the Pound to New Zealand Dollar (GBP/NZD) exchange rate could advance.
New Zealand data to focus on this week includes the NIZIER Business Opinion Survey, NZ Card Spending figures, Business NZ Performance of Manufacturing Index, the REINZ House Price Index and Food Price figures.
Data from China, one of New Zealand’s, main trading partners, will also play a part in the direction of the New Zealand Dollar exchange rate. China’s inflation data is scheduled for release on Wednesday and the nation’s trade figures are due out on Thursday.
UPDATED: 09:35 GMT 09 July, 2014
Pound to New Zealand Dollar (GBP/NZD) Exchange Rate 0.3% Lower
Despite the fact that New Zealand’s Retail Card Spending data showed an unexpected month-on-month decline in June, the Pound to New Zealand Dollar (GBP/NZD) exchange rate continues to trade in a weaker position.
The New Zealand Dollar posted widespread gains on Tuesday as the appeal of the commodity-driven asset was enhanced by a positive revision to New Zealand’s credit outlook.
Fitch, one of the top three ratings agencies, revised New Zealand’s outlook from stable to positive and the ‘Kiwi’ surged in response.
The USD/NZD exchange rate approached a record low as the New Zealand Dollar climbed by a further 0.3% overnight.
During the South Pacific session data showed that total Card Spending in New Zealand increased by 0.5% in June, month-on-month, following a positively revised 1.8% gain in May.
Retail Card Spending, however, stagnated in June rather than rising by 0.2% as economists had anticipated.
The Pound to New Zealand Dollar (GBP/NZD) exchange rate could experience movement later today as a result of New Zealand’s Performance of Manufacturing Index, due out at 23:30 GMT.
New Zealand Dollar (NZD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
New Zealand Dollar,
,US Dollar,0.8740,
New Zealand Dollar,,Euro,0.6425,
New Zealand Dollar,,Australian Dollar,0.9334,
New Zealand Dollar,,Pound Sterling,0.5096,
US Dollar,,New Zealand Dollar,1.1446,
Euro,,New Zealand Dollar,1.5560,
Australian Dollar,,New Zealand Dollar,1.0712,
Pound Sterling,,New Zealand Dollar, 1.9622,
[/table]
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