This month has seen Chinese uncertainty and GBP worries act as the main driver on GBPNZD. Expectations are for next week to become a little more interesting on the NZD currency itself as we have the RBNZ (Reserve Bank of New Zealand) Interest rate decision. The RBNZ have their current interest rate set at 2.5%, this high level of interest has previously helped support a very strong New Zealand dollar although in recent years a lower interest rate and worries over a slowdown in China (a major importer of NZ milk) have led to Kwiw weakness.
The decision next week will be accompanied by a statement on policy and with the slowdown in China likely to continue I think a rate cut is more likely than a rate hike. The Kiwi has reacted quite strangely to previous interst rate cuts. Usually a cut would cause the currency to wekaen, the last cut caused the currency to strengthen as investors still favoured the Kiwi and its returns versus the worries of elsewhere.
Next week’s data is therefore hugely important, if you have a transfer to consider please email me [email protected] to learn more.