The Kiwi has once again started the month on the back foot. Despite positive trade data that saw the kiwi stronger at the end of January, a surprising rise in unemployment figures last week drastically switched the trend against the New Zealand dollar with a jump up to 4.3%.

Currency Pair% Change in 1 monthDifference on £200,000
GBPNZD2.35%$9,000

Furthermore, the US-China trade war face off has sucked much of the appetite for risk out of the markets which has left commodity based currencies like the kiwi out of favour with investors.

Evidently the 2 factors have combined and despite all of the Brexit uncertainty UK side, the pound has been relentless in capitalising on the turn in trend against the Kiwi, with a rise of nearly 2% in the space of a week, providing more than $7,000 from a £200,000 transfer.

This move has provided those in the market for New Zealand dollars with an excellent window of opportunity to maximise their returns. If you have an immediate requirement, feel free to get in touch with your account manager to make sure you are in a position to move on the next spike in your favour.

How issues in China are affecting the New Zealand Dollar

Is a move back towards 1.95 on the cards?

With the scene set, there does seem to be real potential for GBP NZD volatility with the RBNZ’s monetary policy statement due along with key inflation level projections for Q1 this evening.

In his most recent monetary policy statement, Governor Adrian Orr highlighted the strong employment levels, despite the downturn in global trade tensions, as a strong basis for the economy moving forward so it will be interesting to see if last week’s worrying releases are acknowledged.

Inflation levels also remain a clear area of concern for the RBNZ and last night’s modest retail sales number may not provide much support to the Kiwi in the build up to tonight’s release. Those looking to sell New Zealand dollars may want to consider their options ahead of this evening to limit their exposure to another potential move back towards the 1.95 mark.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.