THE New Zealand Dollar began trading at around 1.7864 to the British Pound last Monday and around 1.1643 against the US Dollar. The Kiwi Weakened against both currencies to end the week at 1.8149 to the Pound and 1.1869 to Dollar. The Kiwi opened in the same band this morning at 1.8159 to the Pound and 1.1893 to the US Dollar.
The preliminary Chinese manufacturing PMI numbers released on Tuesday showed continued slowed growth for New Zealand’s second-largest trading partner. The reported HSBC number was 50.5 for April compared to the April’s final reading 51.6. China will hope to keep this number above 50 in the next few months as anything below indicates a shrinking manufacturing sector.
Later today the European Manufacturing data is due to be released and is likely to have an impact on emerging economies including New Zealand. The Kiwi has been sensitive to global changes over this last week and will look to stabilize over the next few days leading up to month end.
On the local front, the Reserve Bank of New Zealand will announce the direction of the local interest rate on Wednesday. The market seems to expect the rates to remain unchanged at 2.5%. Hopefully the Governor of the Reserve Bank we give the market clues about when the bank might possible raise their interest rate.
Composed by Elizabeth Britz
Exchange rates as of 09:13, 23 April 2013
GBP / NZD: 1.8163
EUR / NZD : 1.5492
USD / NZD : 1.1934
AUD / NZD : 1.2215
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