Yesterday’s high: NZ$1.7791
Yesterday’s low: NZ$1.7670
Political Tensions See Investors Favour Safe Pound Sterling
An escalation of tensions between North Korea and the United States yesterday sent global money markets into a panic. Donald Trump claimed that if North Korea continued to threaten the United States, they would be met by ‘fire and fury’. This put the markets off risky currencies, such as the New Zealand Dollar, while increasing the appeal of the safer Pound.
Additionally, the Reserve Bank of New Zealand (RBNZ) seemed pessimistic about the path of inflation during the latest policy meeting.
NZD Outlook: Geopolitical Fears Continue Weighing on New Zealand Dollar
With the next New Zealand data not due out until late in the evening, the ‘Kiwi’ is likely to be moved primarily by market reactions to the latest developments in the situation between the US and North Korea. Tonight’s house sales and Business NZ performance of manufacturing index, as well as food prices data for July, may therefore not have much of an impact.
On the other hand, Pound Sterling will have to contend with UK industrial, manufacturing, and construction output figures, the latest trade data, and a GDP estimate for July.
09:30 GBP Industrial Production (YoY) (JUN)
09:30 GBP Manufacturing Production (YoY) (JUN)
09:30 GBP Construction Output SA (YoY) (JUN)
09:30 GBP Total Trade Balance (Pounds) (JUN)
13:00 GBP NIESR Gross Domestic Product Estimate (JUL)
22:00 NZD REINZ House Sales (YoY) (JUL)
23:30 NZD Business NZ Performance of Manufacturing Index (JUL)
If you need to make a NZD transfer but don’t have an account with us just click here to get started.
Senior Currency Broker
T: 01442 892 060