DURING the period from the 4th to the 12th of March, one Great British Pound fetched between 1.804 and 1.833 New Zealand Dollars. One Australian Dollar also fetched between 1.233 and 1.246 New Zealand Dollars during the same period.
With the New Zealand Dollar having strengthened against the British Pound over the past few months, as well as over last week, the outlook for the Kiwi Dollar was looking rosy. That was until a severe drought started ravaging New Zealand’s North Island this Southern summer.
It has had no material effect on the Economy so far, but with the reserve banks Graeme Wheeler scheduled to make an announcement about the negative effect on the economy due to the drought; traders will be keeping a close eye on the GBP NZ currency pair.
More bad news for the New Zealand Dollar over the last week was that Chinese data revealed that imports had fallen over 15%, drying up demand for NZD’s, with New Zealand, as well as Australia, relying heavily on exports from China.
There was some positive outlook for the Kiwi Dollar though, as the European Central Banks Mario Draghi stated he was feeling more optimistic about the Euro Zones financial position as well as Italy’s political stalemate.
Coming into a new week, the NZD had a further revival, gaining on the positive news coming out of America’s stock market, with Standard and Poors Index moving towards a record high.
“Risk sentiment remains positive,” said Imre Speizer, senior markets strategist at Westpac Banking. The kiwi dollar had a bounce last night “following the US share market”.
At 10:00 GMT 12 March 2013
GBP / NZD: 1.804
EUR / NZD: 1.576
USD / NZD: 1.211
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