After British economic data disappointed on Friday, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dived by around -0.37%. Positive data out of New Zealand, meanwhile, has been enough to overshadow concerns in the commodities market after OPEC refrained from cutting production.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 1.9943.
Previously…
The GBP/NZD exchange rate continued to weaken as UK migration data raised economist worries that support for the anti-EU UKIP party will grow ahead of next years general election.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate gave up gains after the ‘Kiwi’ was boosted by positive data out of neighbouring Australia and improved domestic trade data.
According to data published by Statistics New Zealand, Octobers trade balance came in at a deficit of NZ$908 million, a trade gap that was higher than the NZ$645 million forecast by economists. The data was deemed as positive however as the deficit was much improved on Septembers deficit of NZ$ 1.35 billion.
The data was not all positive by any means as it also showed that total exports had fallen sharply compared to last year.
The drop in exports was a result of a huge decline in milk powder orders from China.
Orders were down by 77%.
Milk powder, butter, and cheese exports to all countries fell by $361 million.
“Milk powder exports to China fell after the record prices and quantities of late 2013, contributing to a 40% fall in exports to China,” international statistics manager Jason Attewell said.
The ‘Kiwi’ was also able to advance as the US Dollar weakened on the release of mixed economic data releases. Unemployment claims in the world’s largest economy increased more than forecast causing investors to raise their bets that the Federal Reserve will choose to leave interest rates on hold until the latter part of next year.
Trading volumes are likely to be relatively quiet on Thursday due to the closure of the US markets for the Thanksgiving Holidays.
Also aiding the New Zealand Dollar was positive data out of neighbouring Australia. According to the Australian Bureau of Statistics, private capital expenditure increased by 0.2% in the third quarter of the year. The figure beat economist expectations for a decline of 1.7%. In the three months leading to June, private capital expenditure was revised higher to 1.6% from an earlier estimate of 1.1%.
Another report showed that Australia’s new home sales increased by 3.0% in October, after a flat reading the previous month.
With no UK data due for publication the GBP/NZD exchange is expected to see little movement.
