The New Zealand Dollar opened this week at a more palatable level during the Australasia trading zone before sliding once again to above 1.98 against the British Pound in afternoon trade. The early morning support for the Kiwi was mainly driven by positive Chinese export data indicating that global economic recovery boosted the world’s second largest economy and close trading ally to New Zealand.
The Reserve Bank of New Zealand (RBNZ) is set to hold its interest rate meeting on Thursday morning. Although the RBNZ is seen as a predictable player when it comes to announcing changes in the official cash rate, it is unlikely to change the current rate on Thursday. The monetary policy meeting that follows often reveals future trends and policy changes. These announcements often affect the mortgage, bond and currency markets as they factor in the future changes in the local investment climate. A change in the current or future expected rate is likely to have a big impact on the Kiwi and investors will keep their fingers on the pulse to stay ahead of the curve.
Later in the Australasian trading morning on Thursday, the Australian Bureau of Statistics will announce their inflation, unemployment and credit card purchases data. New Zealand and Australia have close trading ties; any change in the one economy is likely to have an impact on the corresponding economy, so finding a balance by adjusting their exchange rate is important.
GBP / NZD : 1.9842
EUR / NZD : 1.6637
USD / NZD : 1.2088
AUD / NZD : 1.1022
Exchange rates as of 09:37, 11 December 2013
Note: The above exchange rates are based on “interbank” rates.
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