Idle activity for the New Zealand Dollar ahead
The New Zealand Dollar has seen a marginal decrease over the last week after Moody’s Investors Service downgraded 15 global banks and euro-zone problems continued to weigh on sentiment.
THE New Zealand Dollar traded at 1.9785 NZD to the British Pound on Monday, up from the 1.9805 NZD on Friday, finishing on an average of 1.9770 for the week.
The Euro has seen its largest fall in five months against the dollar as Moody’s Investors Service lowered credit ratings on 15 global banks, adding to concern that Europe’s debt crisis is deepening.
This continues to affect investors risk appetites and causes them to stray away from riskier assets and currencies, such as the New Zealand dollar. Despite the above, the preceding week has been rather stagnant for the Kiwi with investors holding out from trade until the situation in Europe is more certain.
European policy makers are due to meet this week at a summit in Brussels to discuss the regions sovereign debt concerns. Market sentiment expects a nervous week for the Kiwi with slower trade expected up until Friday when the outcome from the summit will be announced.
“The Aussie and Kiwi are caught between ongoing fears of contagion, slower global growth and expectations of further quantitative policy measures abroad,” said Greg Gibbs, a senior currency strategist at Royal Bank of Scotland Group Plc in Sydney.
“We still think the NZD is on a positive medium-term trend and dips below 0.7500 USD are unlikely to be sustained,” FX strategist Mike Jones said.
GBP / NZD: 1.975
EUR / NZD : 1.587
USD / NZD : 1.2692
AUD / NZD : 1.271
Exchange rates as of 25/06/2012 at 09.13am.
Composed by Saskia Johnston of 1st Contact
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