The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending 0.2% higher on Monday ahead of this week’s influential economic reports for New Zealand.
The ‘Kiwi’ edged lower against its British rival during Australasian trading as China’s Non-Manufacturing PMI for July was shown to have fallen from 55.0 to 54.2 – a six month low.
The contraction sub-index slid from 60.6 to 58.2 in the same period.
A representative from the China Federation of Logistics and Purchasing said of the result; ‘The volatility in the various sub-indices for the July non-manufacturing PMI was not great. The market in general is still stable. The [property] market remains subdued. Prices are still in a downtrend, and the declines have increased.’
This report followed last week’s unexpected increase in China’s Manufacturing PMI.
The US Dollar to New Zealand Dollar exchange rate was little changed having pared some of last week’s losses in the wake of slightly disappointing US Non-Farm payrolls data.
While the US economy added over 200,000 positions in July, the 209,000 increase was less than the 230,000 gain economists had anticipated.
As stated by senior strategist Sam Tuck; ‘The data last week was pretty decent, but the one report everybody wanted to be strong was payrolls. Long-term, US data should strengthen, but the ‘Kiwi’ is looking a bit oversold, and consolidation would be healthy.’
The USD/NZD pairing had jumped previously as the US economy was shown to have rebounded by considerably more than anticipated in the second quarter of the year.
During the European session the Pound was bolstered as the UK’s measure of construction output came in slightly higher than forecast.
Although the PMI did ease from a four-month high, the gauge came in at 62.4 rather than 62.0 and showed that employment in the sector was at record levels.
Tim Moore, an economist with Markit, said of the figures: ‘All three core categories of construction activity saw historically steep improvements in output levels through July, unsurprisingly led by a resurgent house building sector. Overall the survey adds to the view that construction companies have performed impressively so far this summer, which raises the likelihood that the sands of time could wash away the construction weakness seen in the preliminary second quarter GDP release.’
Pound Sterling to New Zealand Dollar Forecast
In the week ahead fluctuations in the Pound Sterling to New Zealand Dollar exchange rate are likely to be caused by New Zealand’s employment figures, due out on Wednesday. The data is expected to show that the nation added positions in the second quarter of the year, with the unemployment rate easing from 6.0% to 5.8%.
If this estimation proves accurate it would be Pound supportive.
Given that the prices of dairy produce (New Zealand’s main export) have been falling lately, investors will also be taking an interest in the upcoming GlobalDairyTrade auction.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trading in the region of 1.9789.
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,0.8502,
New Zealand Dollar,,Euro,0.6334,
New Zealand Dollar,,Australian Dollar,0.9128,
New Zealand Dollar,,Pound Sterling,0.5055,
US Dollar,,New Zealand Dollar,1.1756,
Euro,,New Zealand Dollar,1.5775,
Australian Dollar,,New Zealand Dollar,1.0951,
Pound Sterling,,New Zealand Dollar, 1.9778,
[/table]
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