The New Zealand Dollar could see another gain this week from its five month high on the currency market. Investors will be speculating as to whether the US Federal Reserve will continue the monetary stimulus into the economy. The decision was made last week to increase the US debt ceiling in a bid to avoid defaulting on the US debt repayments.
The Kiwi Dollar moved sideways against the Pound last week with a small decline this morning and was seen trading at 1.907 from 1.911 yesterday evening. The Kiwi was boosted on Friday after data showed that China’s economy expanded at an annual rate of 7.8% in line with expectations and is up from 7.5% in the three months to June. AUD/NZD is trading at highs of 1.1433 and lows of 1.1415 on Tuesday. The Kiwi seems to have lost some ground on the Pound from the 1.9011 GBP/NZD, hovering around the 1.9107 mark on Tuesday 9:20 GMT.
This week investors will be focusing on outstanding data that hasn’t been released since the US partial shutdown. Speculations will continue of when the US Federal Reserve will implement a scale back on their monetary stimulus with a reduction in their bond purchases. Also to be released is the key job report of US Non-farm payrolls that may impact the greenback this week. Information on the Australian Consumer Price Index and the New Zealand trade balance will be released on Wednesday.
GBP / NZD: 1.908
EUR / NZD: 1.618
USD / NZD: 1.176
AUD / NZD: 1.143
Exchange rates as of 9:58 (GMT), 22 October 2013
Composed by Chris Davis