This week there are two key releases which will likely have a big impact on GBPNZD exchange rates. Specifically concerning the New Zealand economy we have the Reserve Bank of New Zealand (RBNZ) Interest rate decision and Monterary Policy Statement. The likelihood of some further news on ‘easing’ or a potential cut in the New Zealand Interest rate is I believe high. Waning Chinese demand in the region should be putting pressure on the Kiwi economy and make a rate cut much more likely. Investors have been holding the Kiwi because of the favourable interest rate,
This week is also the US Federal Reserve Meeting Minutes which will give us insight into the thinking of the US Fed in making their decision last month to raise interest rates. USDNZD has seen some big swings in the last few weeks as the USD has risen causing the Kiwi to weaken against is peers. Further uncertainty as to whether or not the US will raise their interest rate again is likely to cause movements on GBPNZD amongst others.
Predictions! That is after all what this site is about. I would expect USD weakness will cause the Kiwi to rise against a much weaker pound. The Kiwi interest decision will be fairly neutral resulting in further NZD strength. In short if selling Kiwis maybe hang until the end of the week, if buying move sooner rather than later!
For further information and to be kept up to date with the latest trends please contact me Jonathan on [email protected]