Weekly Currency Update GBP/NZD - Week ending 5th March
Mar 9th 2010, 12:28 pm
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Weekly Currency Update GBP/NZD - Week ending 5th March
Hi All,
As promised here’s a brief update on what’s been happening with the New Zealand Dollar over the last week.
A thin diary for domestic data last week gave the market plenty of time to dwell on the fact that New Zealand is not mirroring the sharp climb back to long-run growth rates seen in Australia. The NZD fell to its weakest level since November 2000 against the AUD and with the interest gap between the two countries looking set to widen in favor of Australia in the near-term, continued weakness can be expected. This week the RBNZ will keep official rates at record lows and no change to the language of the post-decision statement is expected, with mid-2010 the stated timing of the first rate increase in the cycle. However, if housing and jobs continue to disappoint then the reality maybe that rates will remain on hold for even longer. Two releases on manufacturing and retail sales will assist the market in upgrading return to growth forecasts.
GBP/NZD movement – High’s & Low’s of last week (1st March – 5th March)
High’s: 2.1962
Low's: 2.1298
A movement of 3.12%
Difference on £200,000
High: NZD 439,240
Low: NZD 425,960
Difference of: 13,280 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.
Regards
Mark Bodega
Director - HiFX
As promised here’s a brief update on what’s been happening with the New Zealand Dollar over the last week.
A thin diary for domestic data last week gave the market plenty of time to dwell on the fact that New Zealand is not mirroring the sharp climb back to long-run growth rates seen in Australia. The NZD fell to its weakest level since November 2000 against the AUD and with the interest gap between the two countries looking set to widen in favor of Australia in the near-term, continued weakness can be expected. This week the RBNZ will keep official rates at record lows and no change to the language of the post-decision statement is expected, with mid-2010 the stated timing of the first rate increase in the cycle. However, if housing and jobs continue to disappoint then the reality maybe that rates will remain on hold for even longer. Two releases on manufacturing and retail sales will assist the market in upgrading return to growth forecasts.
GBP/NZD movement – High’s & Low’s of last week (1st March – 5th March)
High’s: 2.1962
Low's: 2.1298
A movement of 3.12%
Difference on £200,000
High: NZD 439,240
Low: NZD 425,960
Difference of: 13,280 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.
Regards
Mark Bodega
Director - HiFX
