This New Zealand Dollar report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000 at the low and high levels during the past month.
|Currency Pair||% Change||Difference on £200,000|
The New Zealand Dollar is currently sitting at its lowest level against the Pound for over two weeks, reaching new lows overnight of just under 1.78. This was due to the Global Dairy Trade Price Index, a measure of International milk commodity prices, being released yesterday at -1.6% compared to 0.2% last month. As milk products are New Zealand’s largest export, any fall in prices at auction has a negative impact on the New Zealand Dollar. Positive UK Manufacturing data yesterday also helped the Pound to make further gains against the NZD. It was also reported yesterday that the amount New Zealanders borrowed in June for housing grew but at a slower pace for the sixth month in a row. The Reserve Bank of New Zealand have recently cast concerns over large housing debts, seeing it as a concern for the New Zealand economy.
Overnight the Unemployment rate for New Zealand was released at 4.8%, the lowest seen since December, and the Participation Rate, which is the number of working aged people participating in work, also came in below previous and expectation.
As NZ economic data is relatively light for the remainder of the week, the main focus for GBP/NZD rates will be on the UK and the Bank of England’s Interest Rate decision and Quarterly Inflation Report. Any clients looking to buy New Zealand Dollars in the near future may wish to move ahead of these announcements to take advantage of the best levels to do so in over 2 weeks.
Looking further ahead, next month New Zealand will hold its own General Election on 23rd September, and as we have witnessed in recent times, Elections have the capacity to cause huge volatility on the currency markets. The conservative National Party have won the last three elections, and have been in Power for nine years, however as Labour Party leader Andrew Little stepped down yesterday to make way for new leader Jacinda Ardern, the gap between the two parties may now begin to close. Letting us know of any longer term NZD requirements will allow us to keep you updated on any news in the lead up to this volatile period.
Thank you for reading my NZD report, if you have any questions about an upcoming transfer I would be more than happy to assist, please feel free to get in touch on 01494 725 353 or email me here.
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