The Kiwi showed some positive signals after a recent milk contamination scare that put some substantial pressure on New Zealand’s exports. The contamination scare caused China to halt any milk imports from New Zealand, which saw the Kiwi fall to one-month Lows. In the past year New Zealand has exported more that NZD$11 billion in dairy products with China being its largest customer.
Since the scare, reports showed that markets have already absorbed any impact due to the Fonterra scare and no serious food bans are to be put in place. Fonterra’s Chief executive, Theo Spierings, stated that the dairy exporter hadn’t seen any sign of customers pulling back their business.
Positive signals have since helped the Kiwi after New Zealand property data continued to gain ground after reporting 8.1% annual growth in July. Chinese data released early Friday removed fears the China’s economy may be slowing down and help boost neighbouring trading partners, assisting the Aussie and Kiwi to end the week on a positive stand.
Looking ahead, New Zealand retail sales along with Australian consumer confidence index will be the drivers for the week to come as the Australia dollar continues its poor performance. Moving abroad Bank of England minutes due to be released on Wednesday morning will set the tone for upcoming months and confirm whether the Pound’s dominance is set to continue.
Composed by Anton van Teylingen
Exchange rates as of GMT 10:30 13 August 2013
EUR/NZD : 1.662
USD/NZD : 1.163
AUD/NZD : 1.141
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