IN addition to the strong Kiwi dollar, business confidence in New Zealand climbed to a 20-year high. Figures released show house prices increasing by almost three percent in the past three months. Furthermore, strong reported profits, hiring and positive growth in investments all point towards the possibility for an acceleration in inflation. As a result, investors speculate that the Reserve Bank of New Zealand could raise interest rates in a bid to try and cool inflationary pressures from what they name as a “rockstar economy.”
News that could affect volatility in the Kiwi will be the Australian unemployment data, Eurozone Consumer Price Index, and the US Consumer Price Index. An increase in the Consumer Price Index indicates that it takes more dollars or euros to purchase the same set basket of basic consumer items. As a result, inflation is generally bad news for the economy, causing instability, uncertainty and hardship. Other local data scheduled for release today include December’s retail spending on electronic cards and Quotable Value’s December property values.
GBP / NZD: 1.956
EUR / NZD: 1.630
USD / NZD: 1.192
AUD / NZD: 1.074
Exchange rates as of 10:55 (GMT), 14 January 2014
Composed by Chris Davis
:: Note: The above exchange rates are based on “interbank” rates.
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