Despite some disappointing domestic data the New Zealand Dollar exchange rates trended higher on the back of supportive Chinese data, with positive expectations for the latest New Zealand inflation report.
The British Pound has generally been strong against its peers today, although the New Zealand dollar (NZD) has been an exception.
The NZ dairy auction has resulted in a supportive second consecutive rise in the value of national dairy products.
Elsewhere the Pound sterling exchange rates have been boosted by positive poll results concerning a ‘Brexit’ situation.
With markets back in risk-on mode following a strong recovery in oil prices, the New Zealand Dollar (NZD) trended higher ahead of the latest GlobalDairyTrade auction.
Expectations are for a further increase in the price of milk solids, with any signs of recovery in the dairy sector likely to boost confidence in the wider New Zealand economy.
Yesterday's NZ Consumer Price Index report offered some fresh encouragement for the New Zealand Dollar (NZD) exchange rates, as inflation was shown to have improved in the first quarter of 2016.
Thus, in spite of a wide decline in market risk appetite, the GBP to NZD exchange rate slumped as the likelihood of an imminent Reserve Bank of New Zealand (RBNZ) rate cut decreased.
Ahead of the weekend the NZ dollar complex saw a strong resurgence on the back of the latest Chinese data.
While the first quarter GDP of the world’s second largest economy slowed to 6.7%, its lowest level since 2009, this was in line with forecast and thus gave markets little to be particularly concerned about.
Stronger retail sales and industrial production figures offered fresh signs of robustness within the Chinese economy, encouraging investor speculation that the country is avoiding a hard landing and shoring up the NZD/GBP exchange rate.
Latest New Zealand/Australian Dollar Exchange Rates
On Tuesday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
FX markets see the pound vs pound exchange rate converting at 1.
The live inter-bank GBP-USD spot rate is quoted as 1.246 today.
Today finds the pound to australian dollar spot exchange rate priced at 1.92.
Please note: the FX rates above, updated 23rd Apr 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.
Other Currency Exchange News
Volatile Week Ahead for the Aussie and NZ dollar Exchange Rates
It is likely to be a rather volatile week for the New Zealand Dollar exchange rate complex with the release of the first quarter Consumer Price Index and the latest GlobalDairyTrade auction.
Expectations point towards a modest improvement in the New Zealand inflation rate, which could boost the appeal of the New Zealand Dollar as researchers at Westpac note:
‘Our forecast is only slightly below the Reserve Bank’s, and in our view would not be enough on its own to warrant an OCR cut as early as this month.’
Should dairy prices also continue to advance at Tuesday’s GDT auction the NZD exchange rate could enter a strong bullish run, as improving economic conditions decrease the chances of the Reserve Bank of New Zealand (RBNZ) following up its March interest rate cut in the near future.
Brexit Concerns to Drag on GBP/NZD Exchange Rate as Official Campaigns Begin
The latest UK employment data could provoke some movement on the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate, particularly if wage growth continues to demonstrate weakness.
While the Bank of England (BoE) indicated that it will remain on a more dovish bias until after the EU membership referendum in June any signs of stronger employment conditions could still provide a boost to the Pound.
However, as the referendum campaigns have now officially commenced Pound Sterling should be expected to see extra downside risks from ‘Brexit’ uncertainty.
RBA Commentary to Boost Australian Dollar (AUD) Exchange Rates if Rate Cut Remains Unlikely
Investors will be hoping to see further signs of a relaxed attitude in the April Reserve Bank of Australia (RBA) meeting minutes, which could see the Australian Dollar (AUD) trend higher against rivals if the odds of a near term rate cut are diminished.
Nevertheless, seeing as the latest positive Australian employment data was released after the meeting the impact of any dovishness could be muted.
RBA Governor Glenn Stevens will be speaking on Tuesday, however, and his fresh commentary is likely to provide further direction to the Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate.