Weekly Currency Update GBP/NZD - Week ending 12th March
Mar 16th 2010, 10:34 am
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Weekly Currency Update GBP/NZD - Week ending 12th March
Hi All,
As promised here’s a brief update on what’s been happening with the NZ Dollar over the last week.
Manufacturing Sales (ex-inflation +3.1%) rose in Q4 2009 by the most since Q3 2002, as 11 of the 15 industries surveyed recorded gains. Meat and dairy led the way buoyed by increased demand from Australia, which is New Zealand’s largest export market, and a weaker NZD exchange rate that is underpinning confidence among exporters.
Improving construction and manufacturing sectors look likely to drive Q4 GDP higher from the lacklustre +0.2% gains seen in Q2 and Q3 2009. Business NZ Manufacturing Index (53.3 from 52.0) supported the more optimistic outlook, recording its 6th straight monthly increase and the highest level since November 2007. The encouraging manufacturing data left the RBNZ unmoved as they kept interest rates on hold at 2.5% last week, with prospects for the first increase in the cycle remaining for June.
Governor Bollard also coached market analysts that the ‘neutral’ level for rates may be significantly lower than previous estimations of 5.5- 6%.
GBP/NZD movement – High’s & Low’s of last week 8th March – 12th March)
High’s: 2.1794
Low's: 2.1066
A movement of 3.46%
Difference on £200,000
High: NZD 435,880
Low: NZD 421,320
Difference of: NZD 14,560
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
Regards
Mark Bodega
Director - HiFX
As promised here’s a brief update on what’s been happening with the NZ Dollar over the last week.
Manufacturing Sales (ex-inflation +3.1%) rose in Q4 2009 by the most since Q3 2002, as 11 of the 15 industries surveyed recorded gains. Meat and dairy led the way buoyed by increased demand from Australia, which is New Zealand’s largest export market, and a weaker NZD exchange rate that is underpinning confidence among exporters.
Improving construction and manufacturing sectors look likely to drive Q4 GDP higher from the lacklustre +0.2% gains seen in Q2 and Q3 2009. Business NZ Manufacturing Index (53.3 from 52.0) supported the more optimistic outlook, recording its 6th straight monthly increase and the highest level since November 2007. The encouraging manufacturing data left the RBNZ unmoved as they kept interest rates on hold at 2.5% last week, with prospects for the first increase in the cycle remaining for June.
Governor Bollard also coached market analysts that the ‘neutral’ level for rates may be significantly lower than previous estimations of 5.5- 6%.
GBP/NZD movement – High’s & Low’s of last week 8th March – 12th March)
High’s: 2.1794
Low's: 2.1066
A movement of 3.46%
Difference on £200,000
High: NZD 435,880
Low: NZD 421,320
Difference of: NZD 14,560
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
Regards
Mark Bodega
Director - HiFX
