THE New Zealand Dollar began trading last week at around 1.932 to the British Pound and around 1.2021 against the US Dollar. The Kiwi strengthened against both currencies to end the week at 1.9141 to the Pound and 1.1873 to the US Dollar. The Kiwi opened weaker today though, at 1.9282 to the Pound and 1.1952 to the US Dollar.
Better than expected Chinese data strengthened the Kiwi during early trade on Thursday. Some of the initial gains on Thursday were lost during the European trading session as the European Central Bank left interest rates unchanged. The New Zealand Dollar’s risk sentiment was overall improved as the Chinese economy is a major external factor for the Kiwi.
Monday saw local retail electronic transactions increase by 0.3 percent in December 2012. This is the third straight month of increased spending in the local economy. This positive news strengthened the Kiwi during early trade and is likely to keep the Kiwi strong for the rest of Monday’s global trade.
A fall in Australia’s home-loan approvals and vacancies advertisements saw the Aussie fall against the Kiwi during Monday’s trade. Market sentiment is leaning towards a rate cut in Australia as the housing market continues to struggle. This is likely to weaken the Aussie and affect the Kiwi if the decision materializes.
Composed by Elizabeth Britz
Exchange rates as of 08:57 GMT, 14 January 2013
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