Composed by Chris Davis
THE New Zealand Dollar has weakened against the pound but still remains firm against the Aussie Dollar ahead of the speech by Governor of the Reserve Bank of Australia, Glenn Stevens. The speech will see a discussion of the recent rise in Australia’s inflation, and possible interest rate decisions. Stevens also commented that the Aussie Dollar could potentially be lower at some point in the future, than it is today.
Investors are also expected to stay cautious ahead of the two day discussion this Thursday by the Reserve Bank of New Zealand as to whether it will change the official cash rate. This rate is set by the Reserve Bank to meet their inflationary target. Westpac chief economist Dominick Stephens indicated that RBNZ will not give away too much in regards to the official cash rate tightening decision as this could impact fixed term mortgage rates. A reaction to this could add fuel to an already booming housing market, significantly impacting the Kiwi Dollar.
Current data that could impact the Kiwi this week will be the US retail sales forecast, US Consumer Price index and the Bank of Japan’s Interest rate decision. This is a big week for the Kiwi Dollar with the data to be released and should keep investors on their toes.
GBP / NZD: 1.947
EUR / NZD: 1.665
USD / NZD: 1.211
AUD / NZD: 1.150
Exchange rates as of 12:31 (GMT), 29 October 2013
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.