New Zealand Dollar Forecast: NZD/GBP, NZD/EUR, NZD/AUD Exchange Rates Surge As NZ Inflation Outlook Improves

Published: 20 Oct 2017 21:24 Forex

new zealand dollar exchange rate

New Zealand Dollar (NZD) Exchange Rate Rebounds from Previous Bottoms vs the AUD, GBP and the EUR Currencies

The New Zealand Dollar managed to rebound against a host of other major exchange rates after the Reserve Bank of New Zealand released its inflation outlook.

The central bank envisages a bounce in consumer price inflation in the next couple of years, with year one reaching 1.32% (previously 1.11%) and year two expected to register 1.85% (formerly 1.80%).

A quick foreign exchange market summary before we bring you the rest of the report:

On Friday the Pound to British Pound exchange rate (GBP/GBP) converts at 1

The live inter-bank GBP-GBP spot rate is quoted as 1 today.

At time of writing the pound to euro exchange rate is quoted at 1.17.

The pound conversion rate (against australian dollar) is quoted at 1.937 AUD/GBP.

The GBP to USD exchange rate converts at 1.262 today.

NB: the forex rates mentioned above, revised as of 29th Mar 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.

New Zealand Dollar Exchange Rate Forecast: RBNZ Inflation Expectation Increased

Industry expert Craig Ebert commented: ‘The latter (year two inflation expectation) would appear to have stabilised just a sliver below the 2.0% mid-point idea. Not caving into the 1.0% inflation (expectations) level the RBNZ has run as a rate-cut scenario. And if we can believe our CPI forecasts – along with the Reserve Bank’s supposition that inflation expectations exhibit signs responding to the actual inflation cycle – then we can imagine these inflation expectations variables probably trend higher, not lower, over coming quarters.’

Meanwhile, the Australian Dollar was offered little support when the Reserve Bank of Australia (RBA) reiterated that there was room to cut interest rates again if necessary. Tuesday’s meeting minutes detailed the discussion amongst policymakers at the May meeting, which resulted in a 25 basis point downward adjustment. Speculation over the effectiveness of the first rate cut at the start of the year has been varied, but many economists agree there has been little result as of yet.

British Pound to NZ Dollar (GBP/NZD), Euro to NZ Dollar (EUR/NZD) Exchange Rates Decline on UK, Eurozone News

Over in Europe both the Pound and the Euro registered losses against other currency peers after an interesting morning of trading. The Pound declined on account of a slip in UK inflation, a move that surprised economists who’d forecast stagnation. The April core ecostat fell from 1.0% to 0.8%, while the non-core measure entered deflation at -0.1%.

ADVERTISEMENT
foreign exchange rates
Industry expert Duncan Weldon wrote: ‘CPI at -0.1% year-on-year, first dip into deflation since 1960. Timing of Easter this year an issue slightly depressing prices.’

Meanwhile, the Euro took a hit as the ECB announced it would be upping the pace at which it buys sovereign bonds. The common currency exchange rate also declined on uncertainty in the situation between Greece and its creditors. The nation has been renegotiating its austerity deal since January but has made little headway. However, with Greece expected to run out of funds in the next few weeks, the government needs to agree on a deal to keep the nation financially afloat. Meanwhile, Eurozone New Car Registrations rose by 6.9% in April, following the previous month’s 10.6% gain.

Additionally, final Eurozone CPIs remained in line with initial April estimates.

On a less positive note, the Eurozone’s trade surplus narrowed more than expected in March.

Advertisement

Save money on your currency transfers with TorFX, voted International Money Transfer Provider of the Year 2016 - 2022. Their goal is to connect clients with ultra competitive exchange rates and a uniquely dedicated service whether they choose to trade online or over the telephone. Find out more here.

Related News

Top Global FX Exchange Rate Forecasts - Latest Data Projections From Financial Institutions and Market Analysts

Euro to Dollar forecastPound to Euro forecastPound to Dollar forecastEuro to Pound forecastUS Dollar to Canadian Dollar forecastUS Dollar to Yen forecastAustralian Dollar to US Dollar forecast