The Indian Prime Minister Narendra Modi on a visit to New Zealand stated the countries both recognise a need for better economic engagement. Modi went on to state that the two leaders have agreed to work towards early completion of a trade agreement. New Zealand who are a major exporting country could greatly benefit from exposure to the Indian market and a trade deal of this magnitude could boost investor confidence.
Last night New Zealand released their import and export for September along with the latest trade balance figures. The results showed an increase in the amount of imports to exports. This could be a clear sign that as the deficit grew by nearly $200m the strong currency could be having an effect on foreign importers.
Whilst the export number did grow from the previous month by $90m the imports also increased by $280m. If this trend was to continue then the RBNZ might be forced to act.
The Kiwi has enjoyed enormous strength of late however the major boost for the currency is concerning as a predominantly exporting nation. If you are looking to complete a New Zealand Dollar requirement I would consider keeping in touch with your broker as the Reserve Bank of New Zealand are known to announce changes in their plans. They RBNZ are known to be actively trying to weaken the currency and the currency could majorly weaken if there was to be an interest rate hike in the US.
Clients looking to buy or sell NZD may wish to get in touch following the UKs GDP figures this morning. Call our trading floor on 01494 725 353.