THE New Zealand Dollar began trading at around 1.9527 to the British Pound on Monday last week, and around 1.2284 against the US Dollar.
The Kiwi weakened against both currencies as European finance ministers discuss Greek aid. Friday’s trading session closed with the Kiwi around 1.9659 and 1.2391 respectively, as the World focuses on the US ‘fiscal cliff’ talks.
The Eurozone finance ministers will hold an ‘extraordinary meeting’ next week. The European Union has decided to delay the payment of 32.6 billion Euros to Greece. The uncertainty in the Eurozone and its decisions to provide aid to Greece and Spain will continue to play a major role in the New Zealand Dollar.
Local retail sales negatively impacted the Kiwi last week. The market expected a small increase in the data released on Wednesday, but a 0.4 percent decline was instead reported. This coupled with the previous week’s increased unemployment leaves the market questioning New Zealand’s future growth prospects.
The market looks expectantly at the US fiscal cliffs talks in the United States. The ‘fiscal cliff’ refers to the automatic tax increases and government spending cuts, which will almost certainly send the US economy into recession, that will be triggered in the New Year if Congress cannot agree an alternative fiscal arrangement.
News around US economic growth will continue to play a major role in the direction of the New Zealand Dollar.
The news being released this week includes this week’s Global Dairy Trade auction on Tuesday in which markets hope we will see a consolidation of prices after July’s increase of 24 percent.
Composed by Elizabeth Britz of 1st Contact Forex
Exchange rates as of 10:09, 19 November 2012
GBP / NZD: 1.9550
EUR / NZD : 1.5683
USD / NZD : 1.2307
AUD / NZD : 1.2729
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.