THE New Zealand Dollar began trading at around 1.8571 to the British Pound last Monday and around 1.1832 against the US Dollar. The Kiwi weakened against both currencies to end the week at 1.8897 to the Pound and 1.2042 to the US Dollar. By this morning (Tuesday) the Kiwi was slightly stronger at 1.8716 to the Pound and 1.1946 to the US Dollar.
Chinese inflation numbers released on Friday played a large role in the markets last week as investors played the waiting game with range bound trading. The Lunar New Year celebrations in Asia have caused many markets to close. This will decrease liquidity and volume in the market.
The markets will continue to move sideways this week as they wait for the local retail sales data to be released on Wednesday. The New Zealand house price fell in January but this news had little effect on the market.
While the Reserve Bank of Australia has left the interest rate unchanged for now, the bank’s governor Glenn Stevens is pointing towards future rate cuts. The Kiwi is likely to be affected by the timing of these decisions as investors anticipate these economic decisions.
The G-20 is set to meet this weekend and that is likely to have an effect across the global market.
Composed by Elizabeth Britz of 1st Contact Money Transfers
Exchange rates as of 08:47, 12 February 2013
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