New Zealand Dollar FX Forecasts: NZD/GBP Recovers As UK Constructions Short, NZD/EUR Steady, NZD/AUD & NZD/USD Rises

Published: 20 Oct 2017 21:24 Forex

new zealand dollar (NZD) exchange rate

Today's New Zealand Dollar (NZD) Exchange Rate Forecasts vs the Pound Sterling, the Euro and the Aussie Dollar Conversion Rates

NZD/GBP, NZD/EUR, NZD/AUD Exchange Rates Fall in Quiet Data Day, Chinese and Australian Figures Climb

The New Zealand Dollar fell against the Pound, Euro and Australian Dollar on Wednesday in another quiet day for New Zealand data.

Australian Building Approvals rose from a positively revised 9.2% to 14.3% in February on the year, instead of the 10.7% estimate.

China’s manufacturing data also boded well for the Oceanic currencies on Wednesday, with March recording expansion after February’s contraction.

The NZ Dollar recorded gains against the Euro and Australian Dollar exchange rates while softening against the Pound after upbeat UK ecostats emerged.

The NZD has been the stronger of the two Oceanic currencies in recent weeks as investors’ price in the possibility of lower interest rates in the Australia.

The Reserve Bank of Australia recently adjusted its cash rate downwards by 25 basis points and economists believe another cut could be on the way. Strategist Kymberly Martin stated:

‘As the market has moved to factor in greater prospect of an RBA cash rate cut next week, the NZD/AUD cross has pushed up to new highs. The market now prices almost a 70% chance of an RBA cut next week and a total of 62 basis points of cuts by this time next year.’

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

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

The pound conversion rate (against pound) is quoted at 1 GBP/GBP.

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

The GBP to AUD exchange rate converts at 1.938 today.

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.

New Zealand Dollar Rate Softens vs the Majors on Falling Dairy Prices

However, the NZ Dollar has weakened against a host of other majors in recent months as the price of the Trans Tasman nation’s largest export, dairy, falls.

New Zealand dairy giant Fonterra has recorded a decline in profits in what it’s suggested are ‘tough conditions’.

The dairy auctions are held every other week and have been mostly upbeat in 2015. However, any further falls could put the New Zealand Dollar under additional pressure.

Meanwhile, the Euro has been weighed down by political factors in recent months.

Tuesday saw negotiations between Greece and its creditors take a downturn as economists speculated that the nation is on the brink of running out of funds, with no long-term deal in place.

German Chancellor Angela Merkel stated on Monday:

‘The question is: can and will Greece fulfil the expectations we all have?’

Despite the future of the Eurozone remaining in question, the currency bloc’s largest nation, Germany, produced some upbeat ecostats on Tuesday.

Germany’s level of unemployment sank from 6.5% to 6.4% in March, while Unemployment Change came in at -15K. Economists had expected the figure to reach -12K in March after February’s -20K.

The UK also produced some decent data on Tuesday with the final fourth quarter gross Domestic Product ecostat being positively revised from 2.7% to 3.0%.

Additionally, sentiment in the UK rose, with the Consumer Confidence Survey hitting 4 in March from February’s 1 and climbing higher than the estimated 2.

However, the Pound Sterling forecast to be under severe pressure in coming months with the general election just around the corner.

Markets shy away from uncertainty and therefore with the prospect of a hung parliament a very real threat, the UK currency could soften in response.

NZ Dollar Forecast: House Prices to Watch

Wednesday will see the release of French manufacturing figures which could have a mild impact on the common currency.

New Zealand House Prices will emerge on Thursday.

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