THE New Zealand Dollar began trading at around 1.9469 to the British Pound on Monday 1 October, and around 1.2042 against the US Dollar. As the week progressed the Kiwi declined against both currencies trading around 1.9631 against the Pound and 1.2208 against the Dollar on Thursday afternoon. Friday’s trading session saw the Kiwi claw its way back to around 1.9594 and 1.2097 respectively.
Asian Stock markets optimistically anticipated increased support from the world’s major central banks on Friday which supported the Kiwi. The positive market sentiment increased the investors’ appetites for riskier assets.
The US unemployment rate was also released on Friday, at an expectant 7.8 percent for the month of September. The increase in jobs has mainly come from an increase in part time jobs. This positive news may off-set some of the post-debate bounce currently being enjoyed by challenger Mitt Romney in the US presidential race.
The Australian economy seems to be showing slowdown signs as the construction performance index fell to 30.9 last month. Readings below 50 indicates a sign of contraction in the economy. The Reserve Bank of Australia lowered the benchmark rate to 3.25 percent on Tuesday last week.
“The Australian Dollar should weaken in the weeks ahead,” said Andrew Salter, a strategist in Sydney at Australia & New Zealand Banking Group Ltd. (ANZ) “That’s reflecting the domestic fundamentals in Australia. We expect another rate cut in November.”
The Kiwi will remain under pressure in the upcoming week especially if Australia, its biggest trading partner, does not show signs of recovery.
GBP / NZD: 1.9686
EUR / NZD : 1.5884
USD / NZD : 1.2243
AUD / NZD : 1.2442
Exchange rates as of 08:49, 8 October 2012
Composed by Elizabeth Britz of 1st Contact :: 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.