Weekly Currency Update GBP/NZD - Week ending 16th October
 

Hi All,

As promised here’s a brief update on what’s been happening with the New Zealand Dollar over the last week.

Last week’s Retail Sales (+1.1% m/m) beat market expectations and reinforced the view that the RBNZ (Reserve Bank of New Zealand) will have to start raising rates in Q1 2010. Core retail sales, excluding autos, rose by 1.2% as the warmest August on record fuelled consumer purchases of clothing and soft goods. Consumer Prices (+1.3% q/q, annualised) also added weight to tightening expectations showing inflation has not moderated as expected; the latest increased driven by higher food prices, government charges and airfares.

Finally, in a good week for NZ data, the Manufacturing Index (51.7) showed expansion for the first time in nearly 18 months with four of the five sub-indices rising and new orders (56.3) hitting a 22 month high. Improving business conditions and interest rate hike prospects drove the NZD to a 15 month high of 0.7495.

NZD Movement – High’s & Low’s of last week (12/10/09 – 16/10/09)

High’s: 2.2161
Low’s: 2.1295

A movement of 4.07%

Difference on £200k

High: 443,220 NZD
Low: 425,900 NZD

Difference of: 17,320 NZD

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.

A further update will be added next week.

Regards




Mark Bodega
Director - HiFX