The New Zealand Dollar began trading at around 1.932 to the British Pound last Monday and around 1.279 against the US Dollar. The Kiwi Strengthened against both currencies to end the week at 1.920 and 1.258 to the US Dollar. The Kiwi opened Stronger compared to the previous week on Monday morning at 1.929 to the Pound and 1.262 to the US Dollar.
The major contributing factor to the strengthening of the Kiwi against the US Dollar last week was that the Federal Reserve Chairman, Ben Bernanke, put investor’s minds at ease by informing them that the Federal Reserve will not be buying back large amounts of its bonds at once. The buying back of the bonds will depend on economic data that will be released in the upcoming months. The delay in the Quantitative Easing has reduced the impact of speculative traders and normal trading dominates the markets.
Data was released in the UK on Wednesday for Retail Sales and Consumer Price Index. The Consumer Price Index (CPI) measures the price of a “basket” of consumer goods. The data released showed that the price of goods has become more expensive, year on year (YoY). With both of these figures being worse than expected, the pound lost some value against the major currencies including the Kiwi.
Looking at the week ahead, we have very important data being released on Thursday by the Reserve Bank of New Zealand. The main points to look at will be the release of inflation figures as well as decision on interest rates.
Composed by David Monteiro
Exchange rates as of 09:00, 22 July 2013
GBP / NZD: 1.9246
EUR / NZD : 1.6569
USD / NZD : 1.2599
AUD / NZD : 1.1615
Note: The above exchange rates are based on “interbank” rates. If you want to transfer money to New Zealand then please register/login or call us for a live dealing rate. Make use of a Rate Notifier to send you alerts when the New Zealand exchange rate reaches levels you are looking for.