New Zealand Dollar Forecasts: NZD/GBP, NZD/EUR & NZD/AUD Exchange Rates Fall As Investors Price In Rate Cut Possibility

Published: 20 Oct 2017 21:24 Forex

new zealand dollar exchange rate today

RBNZ Rate Cut Bets Leave New Zealand Dollar Exchange Rate Under Pressure

The NZ Dollar broadly softened against a host of other exchange rate majors including the Pound, Euro and Australian Dollar ahead of central bank statements in the Oceanic region.

The Reserve Bank of New Zealand has recently become more dovish in its stance after halting its aggressive rate hike cycle from last year. It’s expected that the RBNZ may even begin to cut interest rates in the near future, an event that would be devastating for the ‘Kiwi’.

The New Zealand Dollar exchange rate has been more appealing to many investors, as a higher yielding currency than its ‘Australian dollar (AUD) counterpart.

A quick foreign exchange 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

Today finds the pound to pound spot exchange rate priced at 1.

The GBP to EUR exchange rate converts at 1.17 today.

The GBP to AUD exchange rate converts at 1.937 today.

The GBP to USD exchange rate converts at 1.264 today.

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.

Industry expert Alex Hill suggests that RBNZ Governor Wheeler’s report on Tuesday ‘is going to be closely watched. There’s some really polarising views on where interest rates are going to go. The view is still for the ‘Kiwi’ [to] go lower.’

Aus Dollar Exchange Rate Little Changed after Home Loans Data

Meanwhile, the ‘Aussie’ exchange rate is trading amid a relatively quiet week for Australian data. Tuesday saw the Australian Weekly Consumer Confidence Index climb from 108.7 to 110.6 in the week through May 10th. Furthermore, the Australian Home Loans ecostat climbed by 1.6% in March rather than the 1.0% estimate.

Economist Scott Haslem commented: ‘Loans are still broadly consistent with ongoing solid house price growth... and also no longer on a path of further slowing. Looking forward, the RBA’s May rate cut should provide a further boost to demand, and given the likely ongoing strength of housing, we continue to expect the RBA to hold rates at 2% ahead.’
ADVERTISEMENT
foreign exchange rates

Pound to Australian Dollar (GBP/AUD) Exchange Rate Uptrend Continues as UK Data Beats Forecasts

Meanwhile, the UK also had some upbeat economic news on Tuesday with Industrial Production climbing from 0.1% to 0.7% on the year in March. Additionally, the Manufacturing Production ecostat fell from a positively revised 1.2% to 1.1% in March, remaining above the 1.0% expectation. The Pound has been able to recover losses since the general election came to a conclusion last Friday; prior to that the UK currency had been prone to swings as investor sentiment fluctuated.

The US Dollar exchange rate softened against some of its major peers on Tuesday as investors attempted to predict the Federal Reserve’s interest rate hike timeframe.

Meanwhile, the latest US JOLTS report indicated that fewer positions were made available in March than economists had expected. Estimates had suggested 5140 job vacancies would be created, instead the report recorded 4994. Additionally, US Small Business Optimism recorded a gain from 95.2 to 96.9 in April.

Wednesday will see the release of US MBA Mortgage Applications which could have a moderate impact on the market.

Additionally, French Gross Domestic Product data will also emerge.

NZD/GBP, NZD/EUR Exchange Rates Fall as RBNZ Comments Weigh, NZD/AUD in Narrow Range

The New Zealand Dollar (NZD) exchange rate put on a mixed performance on Wednesday after central bank comments relating to the currency’s strength surfaced.

RBNZ Governor Wheeler suggested that the ‘Kiwi’ was still ‘unjustified and unsustainable’ in what has been deemed a prelude to a rate cut by many.

The New Zealand Dollar softened on the news and has since been attempting to gain some stability.

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