New Zealand Dollar Forecasts: NZD Exchange Rate Strengthens Vs Pound, Aussie Dollar And Euro As NZ Dollar Gains Sentiment

Published: 20 Oct 2017 21:23 Forex

new zealand dollar exchange rate

Today's New Zealand Dollar (NZD) Exchange Rate Outlook and Forex Forecasts Versus the Pound, the Euro and Australian Dollar Rates

The New Zealand Dollar exchange rate advanced against the British Pound and Euro on Friday while remaining in a tight range against close counterpart, the Australian Dollar.

Recent data and dairy price increases have seen the NZD exchange rate gain sentiment amid a backdrop of falling inflation and a global slowdown.

Some economists suggest that the New Zealand Dollar rate could reach parity with the Aussie in the near future.

A quick foreign exchange rate market summary before we bring you the rest of the report:

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

FX markets see the pound vs pound exchange rate converting at 1.

Today finds the pound to euro spot exchange rate priced at 1.171.

At time of writing the pound to australian dollar exchange rate is quoted at 1.937.

Please note: the FX rates above, updated 29th 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.

NZ Dollar Falls vs Pound and Euro on Domestic Data

The New Zealand Dollar (NZD) exchange rate fell against the Pound and Euro while remaining in a tight range against the Australian Dollar after New Zealand domestic data printed unfavourably.

The New Zealand Confidence Index slipped in February from an elevated 128.9 to 124.0. The fall marked a -3.8% decline in the face of tumbling oil prices and low interest rates.

Industry expert Cameron Bagrie stated: ‘We’re not reading too much into the dip – though it is interesting that lower interest rates and petrol prices have not yet engendered the usual Pavlovian response. Buoyant levels of consumer sentiment augur well for the economic expansion.’

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Pound to New Zealand Dollar Exchange Rate Forecast

Meanwhile, the Pound enjoyed a rally on Wednesday when UK labour market data printed positively.

The UK Unemployment Rate softened from 5.8% to 5.7% despite expectations to remain stable.

Jobless Claims Change had been pegged to show a -25.0K decline, but defied estimates when it recorded a substantial -38.6K figure in January.

Meanwhile, Employment Change surged at 103K in the three months through December.

Thursday saw influential UK data thin on the ground; however, CBI Trends Selling Prices increased from -6 to a much more positive 8 in February.

In addition, Trends Total Orders reached 10 after January’s 4.

Euro to New Zealand Dollar Exchange Rate Forecast

The Euro has been tentative as negotiations between Greece and its creditors continue. However, Greece applied for an extension in its current austerity deal on Thursday while long-term plans are worked out but the request was denied by Germany.

Industry expert Kathleen Brookes stated: ‘The Eurogroup meeting on Friday, the third in a week, comes after Greece requested a six-month bailout extension.

The good news is that, if approved, Greece will be able to pay back the 21 billion Euros of principle debt repayments that come due between now and August.

The bad news, is that even if this extension is approved, we will be back in the same position in six-months time and Greece’s long-term debt problems remain unsolved.’

New Zealand to Australian Dollar (NZD/AUD) Exchange Rate Forecast

The Australian Dollar has softened after iron ore prices slipped yet again.

Australia’s largest commodity fell by around 50% in 2014 and some economists have suggested more losses are still yet to come.

However, some experts have suggested Chinese demand could pick up in the near future, pulling the price of the raw material higher.

With no further Australian domestic data out over the rest of the week, the ‘Aussie’ is susceptible to any commodity price changes and global developments.

German Producer Prices will be published in Friday’s European session.

A host of Eurozone Purchasing Managers Indexes will also be made available on Friday.

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