The New Zealand Dollar is currently under pressure, why and will the downward trend continue?

New Zealand Dollar: NZD Falls on Declaration of Pandemic and Europe Travel Ban

The New Zealand Dollar has been coming under pressure over recent weeks, and using the US Dollar as a barometer it’s trading at a 6-week low. It’s not the only commodity linked currency under pressure at the moment but it is one of the worst performing.

Against the Pound the currency has lost over 11% over the past year and the GBP/NZD current trend doesn’t appear to be showing any signs of a reversal anytime soon, especially now the transitional Brexit arrangement has been announced.

The pair aren’t far from hitting 2.00 which would be the first time GBP/NZD has been this strong since the middle of 2016. Those following the Kiwi’s value will be keenly following the new US Fed Reserve Chairman, Jerome Powell’s first committee meeting as a rate hike from the Fed is likely to result in a downward move for the Kiwi. This is because as the USD starts to offer a higher rate of return investors are likely to begin moving their funds into the USD as opposed to other more risky currencies such as the NZD and the Australian Dollar.

Overnight there will be the RBNZ official cash rate which is expected to remain at 1.75%. Any deviations from this figure are likely to result in movement for NZD exchange rates. If you would like to be kept updated in the event of a spike for the NZD do feel free to register your interest with me.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.