Kiwi dollar slightly weaker as GDP fails to promote rate hike expectations…

With the Reserve Bank of New Zealand in a fairly neutral state of late as markets try to anticipate their next move, will it be higher or lower on their interest rate? Yesterday’s GDP (Gross Domestic Product) data showed some positive trends with 2.7% growth as expected, and 0.5% for the QoQ (quarter on quarter) growth.

Expectations for the future now provide some platform for a further hike in the much longer term but ultimately with GDP lower than the previous 2.9% and 0.6% expected, the Kiwi is slightly weaker. Further trends in the future centre around to what extent global events will trigger any big swings in the value of the Kiwi.

A key component of this will be the latest Trade Wars developments which are on-going as a result of Donald Trump. Expectations are for these concerns to continue which will only weigh further on global sentiments and trigger weakness for the NZD.

Clients concerned with GBPNZD are finding levels remain above 1.90, having hit 1.92 overnight. If you are looking to buy NZD in the future then making plans in advance is wise to keep on top of the overall belief that the pound could lose more ground.

A key example of some of the troubles we might have for GBPNZD buyers with pounds is the latest Bank of England decision today at 12, if you have a transaction to buy Kiwis with the pound getting in touch with us ahead of the event is vital to ensure we can help you to capitalise on any sudden changes.

If you have a transfer to make and wish for any updates or information on the latest news and trends to move the market, please speak to me Jonathan Watson by emailing [email protected]

Thank you for reading and I look forward to hearing from you.