Yesterday’s high: NZ$1.7897
Yesterday’s low: NZ$1.7809
NZD Slides on RBNZ Rate Speculation
The New Zealand Dollar plummeted against the other majors on Thursday following the Reserve Bank of New Zealand’s vote to leave monetary policy unchanged.
While the decision to leave interest rates at 1.75% was not a surprise, further indications that the bank is likely to leave rates on hold for the next couple of years caused the ‘Kiwi’ to plummet.
NZD sentiment fell even further overnight on Thursday as the local Business PMI missed expectations, revealing a slump in domestic manufacturing activity in July.
Meanwhile, the Pound also came under pressure yesterday as the ONS reported that the UK’s trade deficit widened to a new nine-month high in June, climbing from -£2.52bn to -£4.56bn.
NZD Outlook: Retail Data to Pressure NZD Next Week?
The New Zealand Dollar may register more losses at the start of next week following the release of the local Services PMI, with economists predicting that the index will show a drop in activity in the services sector last month.
The ‘Kiwi’ may come under even more pressure during Monday’s session as New Zealand’s latest retail figures are expected to report a dip in sales in the second quarter.
Meanwhile, the Pound may strengthen on Tuesday if the UK’s inflation rate holds at 2.6%, although concerns over its impact on consumer spending could hinder Sterling gains.
11:30 NZ Services PMI July
11:45 NZ Retail Sales Q2
09:30 UK Inflation Rate July
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