Back in May the New Zealand Dollar came under increasing pressure, with the Kiwi hitting its weakest levels against both the Pound and the US Dollar so far this year at the time.
Since then, there has been a fightback from the Kiwi as a quick look at a 2-month chart will demonstrate. Some economists are suggesting that the economy of the country has gone from outperforming on the economic stage to more of a support act. At the times of the very strong economy the country attracted high levels of skilled migration which further boosted the economy, whereas now that it’s tailing off the levels of migration are following suite and this is slowing the economies growth rate furthermore.
House price growth along with construction activity has also slowed which hasn’t worked in favour of the economy, and this is reflected in the Kiwi’s value over the past year.
It has begun to turn a corner recently as the title of this blog suggests, but it remains to be seen whether this is a longer term reversal or just a short term opportunity for those selling New Zealand Dollars.
Later this week there will be Business NZ PMI which will give us an overview of the business conditions in the country. The release comes out at 11.30pm UK time on Thursday.
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@example.com and I will endeavour to get back to you as soon as I can.