Following positive Trade balance data this New Zealand Dollar report looks at the week ahead for NZD exchange rates. The table below shows the difference you would have received when converting £200,000 to New Zealand Dollars at the high compared to the low over the last month:
|Currency Pair||% Change||Difference on £200,000|
The New Zealand Dollar has started the week as one of the best performing currencies overall, after positive trade balance data released early yesterday was a welcome boost for the commodity currency.
February’s trade balance data came in with a surplus of 217M NZD, boosted by an 85M NZD in edible exports to its top trading partners, with a sizable increase in meat exports. As a key producer and exporter of lamb, this was a welcome sign for investors.
Imports also rose to a record breaking high in February for the New Zealand economy. As a commodity currency, the value of the New Zealand dollar is driven by the demand of its resources, hence the surge in the Kiwi’s value.
Whilst the Kiwi has started the week strongly, many analysts still believe that the NZD has the capability of weakening this week, due to the market’s current feeling regarding world trade following Donald Trump’s imposed tariffs on China.
The Kiwi has already weakened a cent throughout yesterday’s trading and the general consensus is for the Kiwi to continue lose ground throughout the course of the week. Any NZD sellers may want to move quickly to avoid losses.
On Wednesday, the latest ANZ business confidence report will be released in the early hours for any UK based clients, followed by building permits released late in the evening the same day.
Whilst it is fairly light in data for the pound, on-going discussions regarding Brexit are likely to be key drivers for the GBPNZD rate this week. I would expect to see the NZD lose ground against the pound throughout the week after last week’s momentum shift with Sterling following the unexpected positivity from the Bank of England combined with positive Brexit news helped to lift the Pound against most of the major currencies.
If this momentum continues it’s likely that the GBPNZD rate could rise to 1.96 – 1.98 before long in my opinion, I would expect any positive data this week to provide a brief window of opportunity for any sellers. Keep in touch with the team of currency brokers here to make sure you capitalise on any movements, call our trading floor on 01494 725 353.