Has the New Zealand dollar been oversold?

I’m recent articles I have suggested that the New Zealand dollar could fall further as the New Prime Minister Jacinda Adern (Labour Party) and Winston Peters (New Zealand First Party) have announced two key changes

The RBNZ will now change the way they decide the interest rates. It used to be the case that the Governor had the final decision but now they are going to use the same system as the UK and have a monetary policy committee. The other key change is the cut to immigration. Investors are worried that there wont be enough workers to produce the commodities that need to be exported.

However things could change in the upcoming months as I expect that we have seen most of the sell off due to the new government. In fact inflation is on the rise at the moment in New Zealand and this could prompt an interest rate hike early next year. If this is the case I expect the New Zealand dollar to make some kind of recovery against all of the G10 currencies.

 

If you are buying or selling New Zealand dollars this week, month or year and I haven’t covered your currency pair I would recommend emailing me with the currency pair (NZDUSD, NZDGBP, NZDAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **