Last week’s high: NZ$1.9580
Last week’s low: NZ$1.8975
GBP/NZD Plunges on Renewed Brexit Anxiety
The Pound to New Zealand Dollar exchange rate spent most of last week tumbling, as UK data failed to boost Sterling demand while the ‘Kiwi’ benefitted from higher risk-sentiment and domestic news.
While the latest UK ecostats were relatively impressive, Brexit concerns took focus once again towards the end of the week when it was confirmed that Britain had indeed unlocked the second phase of Brexit negotiations – but they would not take place until March.
The Pound became highly unappealing as investors are anxious about the likelihood of further negotiation deadlocks in the final year of talks before the Brexit is due to take place.
The New Zealand Dollar, on the other hand, rebounded from its recent lows last week. The appointment of Adrian Orr as the Reserve Bank of New Zealand’s (RBNZ) next Governor, NZ Finance Minister Grant Robertson’s comfort with the trend of the currency, and market demand for risk-correlated currencies, all made the ‘Kiwi’ more appealing.
NZD Outlook: Key Week Ahead for NZ Data
Brexit news and upcoming UK growth data could influence Pound trade in the coming week, but it could be another busy one for New Zealand Dollar trade instead.
While Britain’s economic calendar will be relatively quiet for most of the week, multiple important New Zealand datasets will be published.
Consumer confidence stats will be published by the ANZ and Westpac, and ANZ will also publish a business confidence survey.
Among the week’s more influential stats will be New Zealand’s November trade balance report, due during Wednesday’s Asian session, and the Q3 New Zealand growth rate during Thursday’s Asian session.
NZ Services PSI
04:00 NZ ANZ Roy Morgan Consumer Confidence
11:00 UK CBI Industrial Trends Orders
NZ Westpac Consumer Confidence
NZ Global Dairy Trade Price Index
00:00 NZ ANZ Business Confidence
NZ Balance of Trade
NZ Growth Rate
09:30 UK Public Sector Net Borrowing
09:30 UK Growth Rate
09:30 UK Business Investment
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Senior Currency Broker
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