The forecast for the strength of the New Zealand dollar is looking bleak according to the Reserve Bank of New Zealand’s interest rate decision last week. The central bank stated that interest rates will remain at record lows until early 2020 as inflation continues to remain stagnant.
Over the last few years investors have flocked to the New Zealand dollar due to the high returns on interest rates, however now that the US have hiked interest rates to 1.75% and plan to hike interest rates another 2 more times this year, investors are moving away from the Kiwi and this is a main reason why the Kiwi dollar continues to struggle. Today the New Zealand dollar has dropped to a 3 month low against the Australian dollar.
In other news New Zealand will hold their latest global dairy trade Auction today. In recent weeks the disease Mycoplasma bovis, has spread in the Waikato region and reports are suggesting that 22,000 cows have had to be killed to date. Confidence is therefore down and this event could put further pressure on the New Zealand dollar as dairy is one of the key commodities that drives the New Zealand dollars value.
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! **