In the last month, NZDUSD has fallen from the high of 0.73906 to the low of 0.69883 which results in being 5.44% worse off in the course of the last month. However, the Kiwi Dollar has fared well against the Pound and Euro in the last two weeks, making gains to offset the losses of 2-4 weeks ago.
In the table below you’ll see high to low GBPNZD exchange rate movement when exchanging £200,000 to New Zealand Dollars in the last month:
|Currency Pair||% Change||Difference on £200,000|
The NZD is a commodity-based currency which is closely linked to the Aussie Dollar, the Japanese Yen and the Chinese Yuan Renminbi. It is also influenced by the prices of coal, silver and iron-ore. For the week ahead, I advise keeping an eye on those markets if you have Kiwi requirement.
The Inflation expectations were released this morning by the Reserve Bank of New Zealand. This measures business managers´ expectations of annual Consumer Price Index (CPI – a measure of inflation) 2 years from now. An increase in the current 2.1% will likely see an increase in interest rates, which would mean strength and further gains for the NZD. Expectations are released quarter on quarter for Q1 2018 this time.
Then, on Wednesday, the Royal Bank of New Zealand will announce its decision on whether to raise, maintain or lower interest rates. The data release will be followed by an interest rate statement report, a monetary policy statement (MPS) and a press conference from Adrian Orr, who will be making his first MPS as the RBNZ Governor. His tone and approach will influence markets so expect some volatility for the Kiwi in the coming days. Inflation in New Zealand is decelerating towards the lower end of the 1%-3% target average over the medium term.
On Thursday, Governor Orr will hold a speech explaining the implementation of the Bank of New Zealand's monetary policy. If you do have a Kiwi requirement know that we have a very hard working team who are willing to go above and beyond to get you the best rates and service in the market, don't let the time difference stop you from getting in touch.
For more information on how future data releases could affect NZD exchange rates, call our trading floor on 01494 725 353. You can also track live GBPNZD rates at our live foreign exhange rates page here.