With better than expected employment data for the last quarter of 2014, the Kiwi started its two-day decline on Monday from 2.029 GBP/NZD. Wednesday morning saw it enter a new short-term trading band between 1.99 and 1.975, closing the week at 1.98.
Yesterday saw no big surprises for the Kiwi as it continued in the same trading band. No major news is expected in New Zealand this week, but investors should be following the release of Australian employment data on Thursday morning. Strong economic ties between the antipodean countries can see changes in one country affecting the other country’s future economic growth, as well as current economic indicators (including their exchange rates).
All eyes will be focused on Friday afternoon’s ‘confidence survey’ by Michigan University, which assesses the overall health of the US economy. With the murky economic climate in the US, analysts are confused as to the long-term path they will be following in a bid to dig themselves out of the debt crisis they face. World economic growth is highly correlated to the US economic climate, and all currencies will risk volatile swings if unexpected outcomes are released. Will this announcement shift the Kiwi into a new trading band?
GBP / NZD: 1.9741
EUR / NZD : 1.6449
USD / NZD : 1.2036
AUD / NZD : 1.0857
Exchange rates as of 09:26, 11 February 2014
Composed by Elizabeth Britz
Note: The above exchange rates are based on “interbank” rates.
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