New Zealand dollar exchange rates: Monday's News, Forecasts and Insights
- Written by: Gary Howes
-
New Zealand dollar exchange rates (NZD) are today under broad-based pressure with forecasters starting to see weakness finally start to creep into the NZ dollar.
The New Zealand Dollar slipped lower on global FX markets on Monday, as expectations for the Federal Reserve to continue tapering its stimulus program supported demand for the USD at the expense of the so called 'commodity currency' grouping.
GBP/NZD also rose to come close to reaching the 2.000 mark.
The RBNZ believe New Zealand inflation has remained under control, encouraging expectations that the RBNZ will not need to raise interest rates at least until March.
NZ inflation figures released this evening (21:45 GMT) will be watched closely, considering the implications this has on the central bank’s rate decision.
NZ dollar exchange rates today
- The pound sterling to New Zealand dollar exchange rate (GBP/NZD) is 0.09 pct higher at 1.9918.
- The euro to New Zealand dollar rate (EUR/NZD) is 0.05 pct higher at 1.6422.
- The New Zealand dollar to Australian dollar exchange rate (NZD/USD) is unchanged on a day-to-day basis at 0.8259.
- The Australian to New Zealand dollar rate (AUD/NZD) is 0.41 pct higher at 1.0677.
Note: Our NZD quotes are taken from the wholesale spot markets. Your bank will charge a spread at their discretion when passing on a retail rate. However, an independent FX provider is so well placed on the market that they are able to deliver you up to 5% more currency. Please learn more here.
The NZ dollar traded on offered tone as a large earthquake hit the NZ’s north island.
The earthquake with a magnitude of 6.3 has rattled New Zealand's North Island, but there are no reports so far of major damage or serious injury.
The quake struck 38km (24 miles) north-east of Masterton at 15:52 local time (02:52 GMT) the US Geological Survey said.
Outlook for the pound sterling vs New Zealand dollar (GBP/NZD)
Earthquakes aside, the outlook for the NZ dollar is starting to look increasingly weaker; a strengthening pound sterling continues to threaten a break higher to the 2 NZD level.
"The New Zealand dollar has continued to weaken in early trading, however this may all change depending on the outcome of the figure this evening. With the pressure on kiwi, we expect levels to remain around 1.99 today," says Sasha Nugent at Caxton FX.
The British pound has meanwhile rebounded as U.K. retail sales and core figure rose 5.3% and 6.1% (yoy) respectively in Dec, much higher than estimates of 2.5% and 3.2%.
A strong U.K economy, with expectations that it may grow 3.1% and 3.0% respectively in 2014 and 2015, may support the GBP," says a note from Citigroup. "The U.K. government may cut the budget deficit, lower the income tax and support the small and mid-sized business to support the economy, which may underpin the pound."
RICS house price index fell mildly from 58% to 56%. Persistently high house price may force the BoE to hike rates earlier, which may support the pound.
Outlook for NZ dollar exchange rates today
Swissquote Research:
"NZDUSD retreated to 0.8232, the NZD-bulls lost pace as 50-dma (0.8245) has now crossed the 100-dma (0.8256) on the downside. According to MACD, the short-term bias should turn bearish for a daily close below 0.8220. Data-wise, the sentiment remains mixed between the softer house prices and the lower drop in house sales in December. New Zealand will release inflation report this week. Despite softer inflation expectations, the RBNZ is likely to proceed with a rate hike latest on March. Expect limited downside. The NZDJPY meaningfully trades below the 21-dma (today at 86.266) for the first time since November 22th."
ICN Financial say:
"The pair was under heavy pressure on Friday, as price extended the downside towards 0.8230 areas. We might see a minor pullback but the bearish bias remains favored for this week, within the context of the overall sideways range among 0.8100-0.8500 levels.
"Short below 0.8275 targets at 0.8230 and 0.8150. Stop loss above 0.8330."
