THE New Zealand dollar opened the final week of the September weaker after news that the countries largest dairy exporter, Fonterra, reported weaker second half earnings. With New Zealand being the world’s largest milk exporter, the slowdown in production is expected to have a negative impact on the economy.
The Kiwi then moved sideways throughout the weekend ahead of large data releases and results of the US Government budget decisions. Early Tuesday morning the Reserve bank of Australia announced that they would keep the rate unchanged and indicated that this would assist in Australian economic growth. This news saw the Aussie strengthen against 16 of its major counterparts including the Kiwi.
The majority of Tuesday’s movement saw the Kiwi strengthen thanks to news released out of the US that showed partial Government shutdowns will be implemented with immediate effect. This was due to the Whitehouse and Republicans not reaching an agreement with regards to a temporary spending bill and sparked the first American government shutdown in 17 years that will threaten the jobs of up to a million US government employees. The bigger issue on the horizon are negotiations around the US debt ceiling and whether the 16.7 trillion borrowing limit will be raised as Washington go into talks later this month.
News releases that will look to direct the Kiwi’s price movements are namely, the Japanese interest rate decision US Payroll data and US unemployment.
Composed by Anton van Teylingen
Exchange rates as of GMT 14:30 01 October 2013
GBP/NZD : 1.961
EUR/NZD : 1.638
USD/NZD : 1.208
AUD/NZD : 1.135
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.