Has the New Zealand dollar been oversold?

I'm recent articles I have suggested that the New Zealand dollar could fall further as the New Prime Minister Jacinda Adern (Labour Party) and Winston Peters (New Zealand First Party) have announced two key changes The RBNZ will now change the way they decide the interest rates. It used to be the case that the Governor had the final decision but now they are going to use the same system as the UK and have a monetary policy committee. The other key change is the...

New Zealand Dollars Breaks 2.00 Barrier (Ben Fletcher)

The GBP/NZD rate fell below 2.00 for the first time in just over a year as the market saw huge volatility yesterday. At one point yesterday there was whole cent movements for Sterling which created chaos. The Referendum has created fantastic selling levels for several currencies against Sterling none more so than the New Zealand Dollar. I am of the opinion that as we move towards the vote there could be further gains for the NZD. This afternoon the Gross Domestic Product data is released for...

GBP NZD at Fresh Highs

The New Zealand dollar continues to see considerable volatility as global factors have a big impact on NZD exchange rates. Chinese economic data released overnight has seen China’s trade surplus arrive much better than expected at $326.1 bn against expectation of $179 bn. The phenomenal figures indicate a robust economy in China and signal that the global economy is still performing well. Strong data in China is generally seen as positive for the commodity currencies which includes the New Zealand Dollar. GBP NZD Rates for GBP...

GBP/NZD Rates Drop Following Poor UK Data (Matthew Vassallo)

GBP/NZD rates have dropped today, with the NZD gaining almost 2 cents since the start of European trading. Looking back and we’ve had a fairly flat market on the pair for the past month, with a small improvement for the NZD. Today’s GBP losses have come about due to yet another poor set of UK economic data releases, in the form of Industrial & Manufacturing Production. These both came out under expectation and when you add the positive New Zealand data that was releases overnight...

GBP/NZD Forecast – Why has the NZD Lost Value? (Matthew Vassallo)

The NZD has found some support against Sterling during the early part of the trading week, helping to halt its recent slide. GBP/NZD rate hit 1.95 at their high last week, before retracing to a low of 1.9187 overnight. With concerns over both the UK and New Zealand economies at present, due to both political factors and Brexit concerns, it has become increasingly difficult to dissect investors thinking. Despite the negative outlook for the UK, Sterling had made impressive gains against the NZD over recent weeks. This...

Pound to New Zealand Dollar exchange rates stubbornly stable (Joshua Privett)

Pound to New Zealand Dollar exchange rates have been stubbornly holding around the 1.74 level despite so much currently going on in the UK economy and political scene. Given that the Pound is up against the Euro and relatively stable against most of the other majors suggests that the Pound is not the one enjoying strength at the moment. The best analogy I have heard so far is that all speculators and investors in the currency markets are largely on the starting blocks waiting to to...

Sterling hits best rate to buy New Zealand Dollars since November (Tom Holian)

The Pound is now trading at its best level to buy New Zealand Dollars since November after the Pound has had a great day across the board against all major currencies. The news is that the Brexit talks appear to have gone very well and this has seen GBNZD exchange rates break past 1.94 during this afternoon's trading session. The British Chambers of Commerce has increased the UK's growth forecast for both 2018 and 2019. They have also raised the forecast for 2020 to 1.6% growth...

Reserve Bank Deputy Governor Raises Doubt on Further Cuts (Ben Fletcher)

The NZD has continues to strengthen as the rate sits around 1.78 with Sterling. Grant Spencer the banks deputy governor mentioned the RBNZ was concerned about the current situation in the housing market. There has been significant appreciation in the cost of housing in NZ and it’s not entirely clear whether a rate cut could cause further problems. There is currently a dispute between the government and the reserve bank as a back and forwards goes on with who’s going to fix the problems. The...
GBPEUR rate remains steady as markets await the Autumn Budget

How will UK’s Brexit Affect GBP/NZD Exchange Rates? (Matthew Vassallo)

It’s been another volatile 24 hours for GBP/NZD rates, as the UK’s Brexit looms on the horizon. The Pound made inroads against the NZD yesterday, as the Brexit bill was ratified through the House of Commons. UK Prime Minister Theresa May now has the authority to invoke Article 50 at any time and the markets seemed to take some relief from this, with the Pound gaining value as a result. GBP/NZD rates hit a high of 1.7664 but retracted this morning, following reports that Scotland will...

New Zealand Dollar remains stable despite global uncertainty – What is impacting NZD exchange...

The New Zealand Dollar has remained stable over the past 24 hours despite the continuing global uncertainty surrounding China and the global stock market as a whole. Exchange rates for the Antipodean currencies have been rather volatile of late and I expect this trend to continue in the coming weeks. The New Zealand Dollar can still be impacted quite considerably by carry trading. Carry trading is the process where an investor borrows money in a currency with a very low interest rate and then shifts the...