New Zealand Dollar Forecasts: NZD Falls Vs GBP, USD & Euro But Steady Vs Aus Dollar

Published: 20 Oct 2017 21:23 Currency Markets

new zealand dollar exchange rates

Weekly NZ Dollar Forecasts Versus the British Pound, Australian Dollar and the US Dollar Conversions

The New Zealand Dollar had been trending higher versus the Pound and Euro while falling against the Australian Dollar after the Federal Reserve disappointed hawkish investors after announcing that interest rates would remain the same until at least the end of April.

A quick forex market summary before we bring you the remainder of this report:

On Thursday the Pound to British Pound exchange rate (GBP/GBP) converts at 1

At time of writing the pound to pound exchange rate is quoted at 1.

At time of writing the pound to australian dollar exchange rate is quoted at 1.938.

The pound conversion rate (against euro) is quoted at 1.17 EUR/GBP.

The pound conversion rate (against us dollar) is quoted at 1.263 USD/GBP.

Please note: the FX rates above, updated 28th Mar 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.

AUD and NZD Exchange Rates Climb

Both the AUD and the NZD jumped as investor sentiment in commodity and emerging market currencies increased.

The support for other currencies could last until the Federal Open Market Committee (FOMC) begin serious discussions on raising rates.

The FOMC dropped the ‘considerable time’ phrase it uses when discussing low borrowing costs, instead suggesting policymakers could afford to be ‘patient’ when considering raising rates.

Currency strategist Raiko Shareef commented: ‘In effect, the “considerable time period” phrase hasn’t actually been dropped. That’s led to the ‘Kiwi’ higher and the US Dollar lower across the board.’

New Zealand Dollar Fell Earlier in the Week

ADVERTISEMENT
foreign exchange rates
The NZD had dipped earlier in the week after New Zealand’s economic growth was revised down.

However, the pace of growth in the third quarter was still faster than economists had expected. Industry expert Stephen Toplis commented: ‘The economy is trucking along very nicely. The pace of expansion looking forward should leave the RBNZ [Reserve Bank of New Zealand] on a tightening bias, and that’s where they are. There’s nothing in the data to suggest the RBNZ needs to be any more aggressive with its interest-rate track.’

Australian Dollar vs NZ Dollar Outlook

The Australian Dollar (AUD) exchange rate made significant gains against other majors on the Fed’s news, despite iron ore values falling back to five-year lows.

Weakening of Chinese figures did little to offer the Trans Tasman currencies any support.

Analyst Paul Gait stated: ‘Whatever happens in China has a profound impact on the economics of steel production and industrial activity globally.’ With no more Australian data scheduled for the rest of the week, the ‘Aussie’ is largely dependent on global developments for movement.

Pound to New Zealand Dollar Exchange Rate Today

Meanwhile, the UK saw a favourable rise in Retail Sales which took it to 6.9% in November and October’s figure was positively revised from 4.6% to 4.9%.

Forex expert Jane Foley commented: ‘The market was taken by surprise. Retail sales were extremely strong. However, markets aren’t anticipating a rate rise until 2016 and even strong data isn’t enough to change that.’ UK Consumer Confidence figures will be out on Friday which could cause additional Pound fluctuations if favourable.

Euro Rate Today

The Euro has had a rough time in the market of late with Greece failing to elect a new president in the first of three rounds of votes.

Any political change within Greece could see the country leave the Eurozone—a prospect that could cause massive instability in the currency bloc.

Meanwhile, Russia’s economy appears to be collapsing, causing further fears that a global slowdown is taking place.

German Consumer Confidence will be out on Friday which might be able to bolster the Euro if favourable.

Advertisement

Save money on your currency transfers with TorFX, voted International Money Transfer Provider of the Year 2016 - 2022. Their goal is to connect clients with ultra competitive exchange rates and a uniquely dedicated service whether they choose to trade online or over the telephone. Find out more here.

Related News

Top Global FX Exchange Rate Forecasts - Latest Data Projections From Financial Institutions and Market Analysts

Euro to Dollar forecastPound to Euro forecastPound to Dollar forecastEuro to Pound forecastUS Dollar to Canadian Dollar forecastUS Dollar to Yen forecastAustralian Dollar to US Dollar forecast