The New Zealand Dollar has remained stable over the past 24 hours despite the continuing global uncertainty surrounding China and the global stock market as a whole.
Exchange rates for the Antipodean currencies have been rather volatile of late and I expect this trend to continue in the coming weeks.
The New Zealand Dollar can still be impacted quite considerably by carry trading. Carry trading is the process where an investor borrows money in a currency with a very low interest rate and then shifts the funds through to a currency with a very high interest rate, making a return on the difference. When the NZD starts to drift a little you start to see the revering of positions, known as the unwinding of carry trades. When this happens the NZD tens to weaken off as all of the flow heads out of the NZD.
If you are looking to buy or sell New Zealand Dollars in the near future then it is well worth getting in contact with us directly as we can help you both with the timing of buying the currency and getting the most for your money when you do come to secure your rate.
If you feel that we can be of assistance then feel free to contact me (Daniel Wright) personally on [email protected] and i will be more than happy to contact you to discuss the options available to you.