The New Zealand Dollar received a double boost towards the end of last week, mostly owing to events around the world as is often the case with the currency.
Donald Tusk’s (European Council President) comments regarding a ‘Hard Brexit or no Brexit’ weakened the Pound across the board of major currency pairs, but especially vs the New Zealand Dollar as the currency benefitted from positive Chinese Inflation figures around the same time.
Inflation in China grew from 1.3% to 1.9% throughout September, comfortably beating the expectation of 1.6%. Producer prices also registered a positive growth figure, which was particularly welcome as it was the first positive figure in 54 months and has eased fears over China’s growth story coming to abrupt end.
With New Zealand geographically close to China and the economies being interconnected, good news for China is likely to spill out to New Zealand and the NZ Dollar so seeing it gain value hasn’t come as a surprise to me.
With no New Zealand based data set for release this week, I’m expecting the Chinese GDP figures in the early hours of Wednesday morning to be the biggest potential mover for NZD pairs.
The expectation is for 6.7% year on year and 1.8% for the quarter. China has remained out of the news recently and New Zealand Dollar bulls will hope this pattern remains, but expect major deviations from the expectations to really impact exchange rates concerned with the world’s 2nd largest economy.
The New Zealand Dollar has gained over 20% on the Pound over the past year, which equates to an additional £11,748.16 on a 100,000 New Zealand Dollar repatriation. If you are planning a currency exchange between the GBP/NZD pair, feel free to get in touch on 01494 725 353 if you wish to discuss timings as well as our award winning exchange rates.
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