It’s a big day for the NZD today as the Royal Bank of NZ makes a decision on the interest rate level tonight. This decision comes after a recent revision down of positive to stable by credit ratings organisation Fitch’s, this essentially means the outlook for New Zealand’s economy is worsening. Whilst this doesn’t come as particularly surprising news it does however physically confirm what many people are speculating about the economy.
In the last few weeks New Zealand has seen losses in the dairy market prices and has genuinely suffered like many commodity currencies with the market situation in China. Whilst this information may have been factored into the current exchange rate the RBNZ decision may just be about to pile more bad news onto an already large heap.
The question is what does this mean for the NZD? Well if you are looking to purchase the NZD you are currently out the back end of a high peak, however according to the Australian Commonwealth Bank you are going to see a steady increase in the next month to 2.30 eventually coming in March. If you are looking to sell NZD, doing it sooner rather than later could potentially avoid poor buy-back rates.
Please contact me if you would like to find out any further information regarding the NZD. I am happy to provide you with information that will allow you to make the most informed decision when changing currencies. No matter how small the transaction there is always money to be saved by making a well-timed and educated decision. If you would like to get in touch please contact me at [email protected] and hopefully I can be off assistance to you.