Pound Sterling to New Zealand Dollar (GBP/NZD) at Best Exchange Rate for Five-Years Today, EUR/NZD, AUD/NZD Exchange Rates Gain
The New Zealand Dollar exchange rate remained under pressure today as China's HSBC Manufacturing PMI slid from 49.6 in May to 49.4 in June rather than remaining unchanged as economists had expected. The Asian nation's non-HSBC gauge of manufacturing also came in below-forecast. Given that the latest ecostats from New Zealand have supported the argument in favour of lower domestic borrowing costs, the 'Kiwi' is likely to continue trending in a broadly softer position as the week continues.
Earlier...
The New Zealand Dollar to Pound Sterling (NZD/GBP), New Zealand Dollar to Euro (NZD/EUR) and New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rates all softened as the week continued and economic reports upped the odds of the Reserve Bank of New Zealand looking to cut interest rates before the end of the year.
A quick foreign exchange market summary before we bring you the rest of the report:
On Friday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.856
At time of writing the pound to euro exchange rate is quoted at 1.168.
The live inter-bank GBP-GBP spot rate is quoted as 1 today.
The pound conversion rate (against australian dollar) is quoted at 1.941 AUD/GBP.
Today finds the pound to us dollar spot exchange rate priced at 1.244.
NB: the forex rates mentioned above, revised as of 19th Apr 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.
Currency Outlook Now: New Zealand Dollar Trends Lower against Euro, Australian Dollar, British Pound
Over the course of the European session the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate gained more than 1.0%, the Euro to New Zealand Dollar (EUR/NZD) exchange rate climbed 0.5% and the Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate surged by 1.3%. In fact the ‘Kiwi’ declined across the board as several less-than-encouraging domestic reports appeared to pave the way for further interest rate revisions from the Reserve Bank of New Zealand (RBNZ).
The New Zealand Dollar had previously gained as investors got over their initial ‘fight or flight’ mode reactions to the developments in Greece.
As industry expert Mark Smith observed, ‘Markets unwound some of their initial ‘knee-jerk’ response following the breakdown in negotiations between Greece and its creditors. Market serenity has returned, viewing the contagion impacts of Greece’s actions as being limited.’
FX Newsflash: GBP to NZD exchange rate hits high of 2.2966New Zealand Building Permits, Business Confidence, Activity Outlook Reports Fall Short – ‘Kiwi’ Exchange Rate Falters
The main reason for the New Zealand Dollar’s decline against peers like the Euro, Australian Dollar and Pound was a run of below-forecast ecostats. The nation’s Building Permits were shown to have stagnated in May on the month and the ANZ Activity Outlook slid all the way to 23.6 from 32.6 in June. Finally, the NBNZ Business Confidence measure plummeted from 15.7 in May to -2.3.
Reuters noted; ‘The weak result added to bets the Reserve Bank of New Zealand will cut rates again at its next policy review on July 23. With Australian rates seen staying at 3% for the next few months, the diverging outlook nudged the Aussie up half a cent to NZ$1.1255. The kiwi also faces another test from a dairy auction due Thursday morning. Near term support is at Monday’s five-year low of $0.6787, with resistance at the overnight high of $0.6883.’
Forex Forecast: EUR/NZD exchange rate trends higher despite Greek NewsCurrency Market Update: GBP/NZD Exchange Rate Supported by UK GDP, EUR/NZD Resilient before Greek Default
The gains in the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate on Tuesday were also the result of the UK’s final first quarter growth data being positively revised by more-than-expected on a year-on-year basis.Meanwhile, suggestions that Greece could reach some sort of accord with creditors before defaulting on its upcoming payment to the IMF helped the Euro hold its own against the South Pacific currency