THE New Zealand dollar traded slightly higher on Monday morning following its Australian counterpart after the release of positive retails figures out of Australia. The Kiwi came to rest at 0.5150 British Pounds, up from 0.514 on Friday, and at 0.825 US Dollars.
The better than expected Aussie retail data has increased demand for commodity-linked currencies ahead of tomorrow’s Reserve Bank of Australia monthly rate review. Any decrease would further support the impact of its rate cut in October. Mike Jones a Foreign Exchange Strategist at BNZ said that the market is 50-50 on a decision to drop Aussie rates to 3 per cent, and so that there could be volatility either way.
Markets also await the release of local employment data this week. It is expected that the household labour force survey to be released on Thursday will show a fall in unemployment. Governor of the Reserve Bank of New Zealand Graeme Wheeler will hold his first press conference this week at which he will present the Financial Stability Report.
Markets are also expected to factor in large amounts of risk this week for local currencies as the US Presidential election results become apparent on Wednesday.
NZD/ GBP 0.515
NZD/ EUR: 0.584
NZD/ USD: 0.825
NZD/ JPY: 64.54
Exchange rates as of GMT 09:00, 5 November 2012
Composed by Monique Chapman of 1st Contact Forex
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.