New Zealand Economy

The New Zealand Dollar struggled for traction against the US Dollar and Pound on Thursday but could perform better in the week ahead as the market rethinks the outlook for Kiwi interest rates, according to ANZ Research.

The New Zealand dollar rallied strongly on Wednesday, driving GBP/NZD back to one-month lows and some key support levels on the charts, following a better-than-expected second quarter labour market report.

The New Zealand Dollar extended a soft run after a new business survey showed a continued deterioration in economic sentiment and raised the odds of an interest rate cut at the Reserve Bank of New Zealand in H2.

The New Zealand Dollar is one of the better performers on the day, with markets welcoming some stronger-than-expected growth data.

The New Zealand Dollar is the day's top-performing G10 currency after it was revealed New Zealand inflation remains far too high for the Reserve Bank of New Zealand (RBNZ) to cut interest rates.

The New Zealand Dollar faces headwinds after the confirmation of a double-dip recession that brings forward a Reserve Bank of New Zealand rate cut.

The New Zealand Dollar's positive momentum has extended and taken it to a fresh seven-month best against the Pound and a new four-month high against the U.S. Dollar, thanks to supportive global developments and despite a dour domestic GDP report.

The Pound to New Zealand exchange rate entered the midweek session near its highest since the Brexit referendum but a deep undervaluation of the Kiwi and the latest Reserve Bank of New Zealand (RBNZ) inflation expectations survey are among reasons why GBP/NZD could be headed for a steady and potentially sharp correction up ahead. 

The Pound to New Zealand Dollar exchange rate drooped further from recent highs in midweek trade after Kiwi inflation converged with Reserve Bank of New Zealand (RBNZ) forecasts and UK inflation underwhelmed the economist consensus though there is reason for thinking GBP/NZD  

The New Zealand Dollar entered the penultimate session of the week on the front foot and at the top of the major currency board while the Australian Dollar trailed near the back of the pack, though not quite as far behind as an underperforming Pound and Norwegian Krone. 

The New Zealand Dollar rose broadly in the midweek session as rising dairy prices and a resilient labour market appeared to weigh on GBP/NZD but the Kiwi's gains could be limited and short-lived if some economists are right in their interpretations of the data.

The Pound to New Zealand Dollar exchange rate entered the new month near one-year highs following six weeks of unbroken gains but could now struggle for further traction as attention turns to Kiwi job figures due out on Tuesday and May's Bank of England (BoE) interest rate decision next week.

The Pound to New Zealand Dollar exchange rate rose to its highest since October in the midweek session after Statistics New Zealand figures showed Kiwi inflation falling to its lowest level for more than a year but some analysts are wary of the outlook for Sterling.

The New Zealand Dollar was a clear underperformer in the penultimate session of the week after Statistics New Zealand announced a steep final quarter fall in economic output that heightens the probability of a recession in the near future, drawing a mix of responses from analysts and economists.

The New Zealand Dollar traded softer after local inflation figures revealed little reason for the RBNZ to pursue further aggressive interest rate hikes.

"There looks to more substance behind the Q2 figures, with the opening up of the NZ economy a clear positive" - ASB.

NZD lagged other major currencies at the start of the new week after a leap in New Zealand inflation rates surprised investors and raised bets for a faster raising of interest rates at the Reserve Bank of New Zealand.

The New Zealand Dollar rebounded from near the bottom of the major currency bucket in the final session of the week but will face fresh challenges from near and afar in the days ahead when first-quarter Kiwi GDP data will be released in close proximity to the latest Federal Reserve (Fed) decision.

The Pound-to-New Zealand Dollar rate has corrected higher into an improved trading range that could see it lift as far as 2.0 if poor second quarter jobs report on Tuesday elicits more dovish rhetoric or policy action from the Reserve Bank of New Zealand (RBNZ) next week.