Wednesday evening New Zealand released their last inflation numbers. The numbers sent shock waves through the market as inflation fell to 1.6% from 1.9%. when the consensus was for inflation to remain at 1.9%. It was no surprise that off the back of the news the New Zealand dollar started to lose ground against all of the major currencies, however the losses were short lives as the US dollar took a further tumble which beniffited the commodity currencies.
Today US President Donald Trump will speak in Davos Switzerland at the economic forum. We have already seen volatility this week from speeches made at Davos. Two speeches in particular that impacted sterling were Angela Merkel’s and Philip Hammond’s. As we know Donald Trump will say exactly what he thinks therefore this speech could have a major impact on exchange rates.
Looking further ahead, now that inflation numbers have dropped, the Reserve Bank of New Zealand are unlikely to even think about raising interest rates. Therefore we could have be coming up to a period of New Zealand weakness in the months to come. However I expect the New Zealand dollar to continue to strengthen against the US dollar.
Data releases to look for next week are trade balance, import and export numbers released Monday evening.
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! **