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New Zealand Dollar Slips as Dairy Prices Plummet

Yesterday’s high: NZ$1.9028

Yesterday’s low: NZ$1.8935

Kiwi Weakened by Sharp Fall in Dairy Prices

The New Zealand Dollar tumbled against the majority of its peers yesterday afternoon as prices fell sharply at the latest global dairy auction.

With dairy products accounting for around 20% of New Zealand’s exports, the 3.5% drop in prices was major blow for the ‘Kiwi’.

However, the Pound’s advance against the New Zealand Dollar slowed on Tuesday as Sterling was undermined by the British Retail Consortium’s latest retail figures, which revealed that year-on-year sales slowed significantly in October.

NZD Outlook: RBNZ to Leave Rates on Hold?

Looking ahead, the GBP NZD exchange rate may see some movement later this evening as the Reserve Bank of New Zealand (RBNZ) holds its latest policy meeting.

With the Bank widely expected to leave interest rates on hold at 1.75%, any movement in the New Zealand Dollar will likely to driven by the RBNZ’s monetary policy outlook, with signals that rates are likely to remain unchanged for the foreseeable future likely to weigh on the ‘Kiwi’.

Meanwhile, the Pound may rally later in the week with the release of the UK’s latest trade figures as economists forecast that Britain’s trade deficit shrunk in September.

Key Events

8th November

21:00 NZ RBNZ Rate Decision Nov

10th November

09:30 UK Trade Balance Sep

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To keep up to date with the New Zealand Dollar, visit the NZD blog in our Currency News section.

Joe Mayhew

Senior Currency Broker
T: 01442 892 060

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