New Zealand Dollar Exchange Rates Ends Trading Week On A High Despite M3 Measure

The New Zealand Dollar (NZD) exchange rate’s movement was mixed on Thursday, after a brief risk-inspired strengthening following the Federal Reserve’s decision to leave US rates frozen the NZD’s movement has slowed.

1. The Pound to New Zealand Dollar exchange rate today: -0.97pct at 1.83929.
2. The Euro to New Zealand Dollar exchange rate today: -1.03pct at 1.54753.
3. The US Dollar to New Zealand Dollar exchange rate today: -1.8pct at 1.38545 NZD.

The New Zealand Dollar failed to find a rallying point on the back of the July NBNZ Business Confidence Index and June M3 Money Supply, which both pointed towards weakness within the domestic economy.

Of particular concern was the sharp decline of the M3 measure, which dipped on the year from 7.3% to 5.9% and seemed to indicate that inflationary pressure is set to remain weak in spite of the RBNZ’s recent efforts.

The NZ dollar vs pound exchange rate appreciated as UK economic outlooks wane, but foreign currency investors may soon sell the New Zealand Dollar from its recent highs in a bout of profit-taking.

The UK’s business situation has done little to inspire confidence among investors lately, with clear signs of concern in leading companies contributing to weakness in Pound Sterling (GBP) exchange rates

Latest Pound/New Zealand Dollar Exchange Rates

Further Gloominess likely in Store for UK and Pound Sterling (GBP) Exchange Rates as 2016 Progresses

The remainder of the present week and the week to come do not look particularly bright for the Pound, given that most forecasts have been highly pessimistic.

Tomorrow will bring the early Gfk consumer confidence result for July, which has a dip from -1 to -5 on the cards, as well as a slide in mortgage approvals for June from 67.04k to 66.5k.

Looking further ahead, Monday’s finalised manufacturing PMI for July is expected to fall into contraction, while Tuesday and Wednesday’s construction and services PMIs are also forecast to worsen.

New Zealand Dollar (NZD) Exchange Rates Mixed Overall as Lack of Data Leaves US Dollar in Controlling Position

New Zealand Dollar exchange rates have made decidedly varied movements of late, with domestic data out of the country being decidedly limited.

In commodities news, the price of class 3 milk per hundredweight has essentially flatlined, while the last major economic story concerned plans to eradicate pest species in the country.

A more decisive influence has been had on the ‘Kiwi’ by the US Dollar, which has recently been cast on the rocks by the Fed’s latest rate freeze. In spite of this, however, forecasts are for a rate hike in September.

New Zealand Permits Data due Shortly, Business Confidence and Unemployment Data also Coming Up

The next data out of New Zealand that is scheduled will come tonight, when the June building permits result is announced. This previously printed negatively, at -0.9%.

Following on from this early tomorrow will be the ANZ business confidence result for July, which has a rise from 20.2 to 21.80 forecast.

Looking ahead to the week to come, late Tuesday will see the announcement of the Q2 employment change, while the actual unemployment rate for the same period is also due. In the latter case, a dip from 5.2% to 5% is expected.

Foreign Exchange Forecast: Pound May Dip on Dim Future for UK Construction PMI, based on RICS Economist’s Predictions

The coming week’s UK construction PMI does not seem likely to rise, at least according to the dovish predictions of Royal Institute of Chartered Surveyors (RICS) Chief Economist Simon Rubinsohn, who has stated:

‘…anecdotal evidence does indicate that the challenge for the British government in establishing a new relationship with the EU could see some investment plans in the construction sector scaled back’.