The New Zealand dollar has had a tough time of late falling to multi-month lows as the US Dollar also known as the Greenback marches forward. NZDUSD is now at the lowest level since December 2017.
The reason for the demise in the New Zealand is that US 10-year bond yields rose above the 3% barrier earlier this week and therefore investors have sold off their commodity currencies and purchased the safe haven Greenback.
The theory is that the higher the price of a bond the more likely the US are of raising interest rates and therefore more investors will flock to the US dollar. No surprises, the New Zealand stock market has struggled this week and could continue to stuggle in the weeks to come, if the 10-year bonds remain above 3%.
In recent weeks the New Zealand dollar has also come under pressure as trade wars escalate between the US and China. Regular readers will be aware that there is a direct correlation between China and New Zealand as New Zealand exports a large proportion to China. Therefore a problem for China is a problem for New Zealand.
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! **