THE New Zealand Dollar saw its highest level in three weeks after Graeme Wheeler, Governor of the Reserve Bank, stated that he would not contemplate intervening in currency markets and halted all speculation of interest rates cuts. The Kiwi held above 82 US cents and 1.957 to the British pound.
The Kiwi was further boosted by an optimistic third quarter gross domestic product data from the US which showed a better than expected two percent growth in the US economy.
There is little local data expected this week, apart from the Building Consents for September which are due on Wednesday and the ANZ Commodity Price Index on Friday. Imre Speizer a currency strategist at Westpac said that the lack of local cues has kept the Kiwi trading in a fairly tight range.
The Kiwi will take its queues offshore this week looking ahead to the Bank of Japans decision tomorrow, China’s PMI on Thursday, US non-farm payrolls data on Friday and the US elections looming ahead. Hurricane Sandy may also have an impact depending on the possible damage.
Market Sentiment shows the New Zealand dollar may still see gains this week as the government’s sale of inflation linked bonds settle. The nation’s relatively attractive yields and manufacturing and payrolls data are also possible instigators for an increase of demand for the currency.
NZD/ GBP: 0.5108
NZD/ EUR: 0.6356
NZD/ USD: 0.8229
NZD/ JPY: 65.4629
Exchange rates as of 08:56, 29 October 2012
Composed by Monique Chapman of 1st Contact Money Transfers : 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.