Weekly Currency Update - GBP/NZD Week ending 9th October
 

Hi All,

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

The respected NZIER (New Zealand Institute of Economic Research) quarterly survey of business confidence jumped to its highest level in a decade in Q3 as a net 36% of firms now expect general business conditions to improve in the next 6 months, reversing the previous surveys net 25% of respondents expecting conditions to worsen. The survey was not all rosy as employment and investment intentions still remain mired in negative territory. The recent improvement in business confidence is, as yet, not being translated into real activity and may be reflecting relief that the worst is over more than anything else. Immediate prospects for official interest rates remain unchanged with the first rate hike not expected until Q1 2010; one of the main reasons to defer monetary tightening is the strength of the NZD that has appreciated by 23% so far in 2009 (high last week 0.7450) and will continue to be a drag on the GDP (Gross Domestic Product) significant export sector.

This week, the Manufacturing Index will be watched for a break above the expansionary 50 level.

NZD Movement – High’s & Low’s of last week (05/10/09 – 09/10/09)

High’s: 2.2325
Low’s: 2.1467

A movement of 4%

Difference on £200k

High: 446,500 NZD
Low: 429,340 NZD

Difference of: 17,160 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