Yesterday’s high: NZ$1.9419
Yesterday’s low: NZ$1.9341
Pound Unable to Advance against New Zealand Dollar
Despite Tuesday’s disappointing Global Dairy Trade (GDT) auction news, the New Zealand Dollar has performed well against the Pound in recent sessions. On Wednesday, GBP/NZD continued to trend close to the week’s opening levels.
The Pound outlook was little changed by Wednesday’s UK Autumn Budget. While some investors were relieved by news that £3b would be spent on Brexit contingency plans, the Office for Budget Responsibility (OBR) also significantly downgraded its UK growth forecasts for the coming years. The OBR also noted that the Brexit process was still filled with major uncertainty that made it difficult to forecast how it may affect UK growth.
The New Zealand Dollar, meanwhile, was able to stand firm as domestic retail sales data came in slightly higher than forecast.
Sales growth for the third quarter came in at 0.2% rather than 0.1% and the figure for the second quarter was positively revised.
NZD Outlook: UK Growth Data Ahead
The Pound may struggle to advance much in the coming days as the OBR’s disappointing UK growth forecast for 2017, and beyond, lingers in the back of traders’ minds.
Thursday’s Q3 UK Gross Domestic Product (GDP) projection is unlikely to cause much shift in Sterling demand unless the data is revised from initial estimates.
Political and economic uncertainties in the Eurozone and US have boosted market appetite for risk-correlated currencies in recent sessions, which could continue to support the New Zealand Dollar in the coming days.
09:30 UK Growth Rate
09:30 UK Business Investment
NZ Balance of Trade
09:30 BBA Mortgage Approvals
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Senior Currency Broker
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