It seems that the improved outlook for trade between the US and China has offered some support to the New Zealand Dollar, which remained resilient yesterday despite poor retail sales data. The New Zealand Dollar report below looks at the potential outlook for the Kiwi. The below table displays the difference in the amount of New Zealand Dollars you could have achieved when buying £200,000.00 during the high and low points yesterday.
|Currency Pair||% Change||Difference on £200,000|
The New Zealand dollar has question marks over its direction after poor retail sales data this week took the markets by surprise. Quarter 1 retails sales fell to 0.1% for the quarter which was down from the 1.7% the previous quarter. The figures represent the slowest growth for over five years which puts into questions the strength of the New Zealand economy. Despite the weaker data the kiwi has proved extremely resilient after the trade battle between the US and China has been put on hold, for the time being. The New Zealand dollar as a commodity currency is heavily impacted by events in China and the performance of the global economy. More trade rather than less trade is good for the kiwi and the latest developments have proved to be a welcome boost.
From here on geopolitical concerns are likely to the biggest drivers for New Zealand Dollar rates. Not only do we have the US China trade tensions to contend with but the North Korean summit is also a factor having an impact. The Italian election result is also creating volatility for EUR NZD as the markets prepare for a coalition government between the Five Star Movement and the League which should be approved by the Italian President shortly.
Rates for GBP NZD have swiftly come off their recent peak on the back of the cooling off on the trade war front after what had been an excellent rally higher in recent weeks. There is still a good opportunity to buy New Zealand dollars but those who are trying to target 1.95 – 2 dollars may struggle following these latest Trump developments. With no economic data from New Zealand for the rest of this week focus will move to building permits and trade data next week.
Clients looking to convert from pounds into New Zealand dollars should pay very close attention to British politics and Brexit in these coming weeks ahead of a very important vote in the House of Commons. British Politics is proving very difficult to predict and there is likely to be considerable volatility for GBP NZD around the time of this vote.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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As always a really quick and easy transaction. James is very knowledgeable and helpful. Great rates.
Always helpful and they always give rates at the very top of the range. Quick transfers to our french bank account – highly recommended. Well done James Lovick 😉