The New Zealand Dollar has been one of the major winning currency pairs over the past month, with the Kiwi gaining over 7% against Sterling during this period.
Interest rate cuts have been avoided, a resurgence in regional demand for Kiwi goods sparked by a stabilising China and an Australia experiencing accelerated growth has sparked optimism in the New Zealand economy and therefore the Dollar.
With positive growth data set to come out very late UK time and early morning New Zealand time today, the run for the New Zealand Dollar is set to continue. However, there is potential for a slight rise today before the fall continues.
This is due to the US interest rate hike, and the shift in the balance of power this will create for global currencies. The 1.75% offered on the NZD makes it an attractive commodity to global investors. But the USD is a more stable currency, so any rate rise announced at 19:00 BST will almost inevitably draw value away from the New Zealand Dollar and into the US Dollar. The secondary effect of this being that the New Zealand Dollar will become a cheaper prospect for its other currency pairs.
So in effect, with the announcement at 19:00 BST for the US interest rate decision, and the announcement at 22:45 of New Zealand growth data, there could be a ‘sweet spot’ for the NZD buyers this morning.
I am well positioned to assist anyone with a buying or selling New Zealand Dollar currency requirement to time their transfer and stay informed in this fluid marketplace. You can contact me directly on [email protected] to discuss a strategy for your transfer and your options.
One final point is that I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for a future requirement you have planned using only a small deposit, eliminating any risk from further currency exchange movements.