NZ Dollar Predictions: Recovery For NZD To AUD, EUR, GBP & USD Exchange Rates

Published: 20 Oct 2017 21:23 Forex

nz dollar exchange rates

The New Zealand Dollar (NZD) exchange rate tumbled this week vs the Euro (EUR) and Aus Dollar (AUD) after New Zealand's Consumer Price Index slid by more than forecast in the third quarter.

However, the NZ Dollar to Pound exchange rate (GBP/NZD) has been able to advance today as the British currency softened against other majors on interest rate hike talk.

What do the latest forex markets show for the key global currencies today?

The Pound to New Zealand Dollar exchange rate today is converting +0.15 per cent higher at 2.04640 GBP/NZD.

The Euro to New Zealand Dollar conversion rate is +0.28 pct higher at 1.61461 EUR/NZD.

The US to New Zealand Dollar exchange rate is +0.24 pct higher with a conversion rate of 1 USD equals 1.27672 NZD.

The Canadian to NZ Dollar exchange rate is +0.25 pct higher with a conversion of 1 CAD is 1.13462 NZD.

The Aus to NZ Dollar exchange rate today is converting +0.23 per cent higher at 1.11905 AUD/NZD.

Note: these are inter-bank forex rates to which margins are applied when transferring euros or pounds abroad - speak to a recommended FX provider to lock in the best foreign exchange rates.

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New Zealand Dollar to Euro Rate Today: NZD/EUR

Thursday saw the release of French, German and Eurozone Purchasing Managers Indexes for the services and manufacturing industries.

The Eurozone Manufacturing PMI rose from September’s 50.3 to 50.7 in August while Services PMI remained at 52.4 - defying economists’ forecasts to shrink.

In recent weeks, debate over whether the Eurozone is on the verge of entering another recession has been a hot topic amongst economists.

However, despite favourable figures today, the Eurozone recovery still has a long way to go before it’s back on track. Markit economist Christian Schulz commented: ‘The rough patch is not over, with many details in the PMI survey warranting caution.’

Debate over the European Central Bank’s (ECB) next move to prevent a triple-dip recession and a fresh Eurozone crisis has been rather heated of late.

So far ECB measures have flopped, leaving many to believe that the central bank will need to undertake quantitative easing (QE) to kick-start the economy.

Capital Economics stated: ‘In all, the [PMI] survey does little to reduce the risk that the Single Currency area is entering its third recession in six years.’

NZ Dollar vs Aus Dollar Rate Forecast: NZD/AUD

The Australian Dollar (AUD) has been trending higher this week after Chinese data and the Australian Consumer Price Index bolstered the commodity currency.

Thursday saw NAB Business Confidence in the third quarter remain at 6 index points, suggesting that sentiment in Australia is steady.

The report stated: ‘Both consumers and businesses remain cautious about spending, despite encouragement from very low interest rates, which is unsurprising given slower rates of income growth. Residential construction remains a relative bright spot that should have flow-on effects to the rest of the economy.’

The NZD to AUD is likely to feel movement from the release of New Zealand Trade Balance, Imports and Exports figures released later on Thursday.

Friday will remain a data-free day for both of the nations meaning any fluctuations in the currency pair will be residual from this week’s data or be determined by any movements in global politics.

New Zealand Dollar to Pound Exchange Rate Forecast

Meanwhile, the Pound Sterling (GBP) has fallen on the news that policymakers are still at odds over interest rate hikes.

Bank of England Governor (BoE) Mark Carney is currently on the dovish side with six other board members while two dissenters, Martin Weale and Ian McCafferty, have moved away and voted in favour of immediate interest rate hikes.

Thursday pushed Sterling lower as Retail Sales figures slipped to only 2.7% in September on the year from 3.7% the previous month.

Friday could see the GBP pushed lower against the NZD if UK Gross Domestic Product (GDP) figures fall, as they’re currently forecast to do.

GDP growth is expected to dip on the year from 3.2% to 3.0%.

The second quarter saw GDP rise by 0.9%, however the third quarter is predicted to slow with only a 0.7% expansion.

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