The on-going difficulties in the Chinese economy is likely to have a negative impact on the NZD over the coming days and weeks. The NZD has struggled for much of last year due to a stagnation in the New Zealand economy and a drop in exports, which are key component of their economy.
Despite the general trend being negative the NZD did fight back towards the end of last year and in fact at the high had spiked over 15 cents.
GBP/NZD rates are currently trading around 2.20 and I fear that the NZD will now struggle to make any further sustainable impact, due to the fresh problems facing the Chinese economy. It has been well documented that China’s economy is facing a downturn and this feeling was intensified again last night, as the Chinese stock market ceased trading for a second time.
This uncertainty is likely to have a knock on effect and due to New Zealand’s trade links with Australia & China, any fallout is likely to have a negative impact on NZD rates in the short-term.
If you do have an upcoming currency requirement and would like a comparable quote with your current provider, or simply wish to gain a further understanding of market conditions and forecasts ahead of a future exchange, then please feel free to contact us on 0044 1494 787 478 and ask for Matt. Alternatively, you can contact me directly on [email protected]