Following newly appointed president Trump to pull away from the trade deal demand for riskier currencies like the AUD and NZD have remained volatile. GBP/NZD rates have moved by over 1.5% over the last few days as speculation on what will happen next heats up.
There has been speculation that China would set into Americas place and indeed commentary from Australia has suggested the 12 country pack will simply move forward as 11.
As speculation on this topic continues, expect it to have an impact on the value of the NZD.
The New Zealand Dollar has gained in strength this week with a brief recovery in value against the Pound as prices rose at the most recent dairy auction. Prices rose by 0.6% bringing an end to two consecutive price declines. Forecasts for future milk prices will continue to impact its value as milk is one of their largest exports.
Tomorrow evening we have potentially the largest economic released for the New Zealand Dollar. Fourth quarter CPI data is released overnight this evening and expected to show a small rise. Importantly if the expected is seen of a 0.3% rise it puts the yearly figure at 1.2% year on year and within the Reserve Bank of New Zealand’s target level. This would be the first time that we see this target reached in over 2 years.
Typically a positive reading would help the currency in question so please be aware that tomorrow buying the New Zealand Dollar is expected to be more expensive than what is available today.
Political events in the UK and US may continue to drive GBP/NZD exchange rates, it may be useful to touch base with your dedicated broker frequently to ensure you are up to date with events. Why not call us today on 01494 725 353 if you havent traded before and would like to talk to one of our team about a New Zealand Dollar requirement?
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