Yesterday’s high: NZ$1.9043
Yesterday’s low: NZ$1.8910
Kiwi Weakened by Dip in Business Inflation Expectations
The New Zealand Dollar fell against the majority it’s of its peers yesterday as firms in New Zealand dialled back their two-year inflation expectations from 2.1% to 2% in the fourth quarter.
Economists suggest that this is likely to cause the Reserve Bank of New Zealand (RBNZ) to maintain its stance to leave interest rates on hold until 2019 when it meets on Thursday.
Meanwhile, the Pound mounted a recovery on Monday as concerns over the Bank of England’s (BoE) recent rate decision began to fade.
NZD Outlook: Dairy Prices to Weigh on NZD?
Looking ahead, the GBP NZD exchange rate may advance again later this afternoon following the latest global dairy auction, with another dip in prices likely to weigh heavily on the ‘Kiwi’ as dairy products account for roughly 20% of New Zealand’s exports.
In the meantime a quiet week for UK data could hinder the Pound’s attempts to advance, with any momentum likely to be dependent on Brexit sentiment ahead of the latest round of talks later in the week.
15:30 NZ Global Dairy Auction
21:00 NZ RBNZ Rate Decision Nov
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