British pound hits a 5-month high of 1.94 versus New Zealand dollar - fears mount that RBNZ is keeping itself busy intervening in the FX markets

The New Zealand dollar (Currency:NZD) is under pressure once more today with gains only being witnessed against the Australian currency:

The pound to New Zealand dollar exchange rate is 0.48 pct higher at 1.9428.
The euro to New Zealand dollar exchange rate is 0.33 pct higher at 1.6429.
The New Zealand dollar to US dollar rate is 0.17 pct lower at 0.7957.
The Australian to New Zealand dollar exchange rate is 0.18 pct lower at 1.1951.

Please Note: The above are spot market quotes to which your bank will add a discretionary spread. However, an independent FX provider will guarantee to beat your bank's offer, thus delivering more currency. Please learn more here.

"The NZD is getting lumped in with the negativity surrounding the AUD at the moment. Nothing has changed with respect to the outlook for the NZ economy, but the fears of an end to QE3 are really damaging the commodity currencies," says Richard Driver at CaxtonFX.

With AUD/NZD having dropped below 1.20, Driver says its fair to assume that the RBNZ will be getting busy intervening in the FX markets, which isn’t good news for the NZD.

The outlook for the GBP-NZD, according to the price charts, favours the upside in this currency pairing to prevail as long as 1.905 is support.

"The RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the pair is above its 20 and 50 MAs (respectively at 1.8777 and 1.8391). Finally, the GBP/NZD has crossed above its upper Bollinger band (1.9319)," say Trading Central.

Australian dollar remains under pressure

 The New Zealand dollar is likely to remain pressured across global forex markets as long as the Australian dollar also remains under the cosh.

"The sentiment towards Aussie remains extremely negative as market continue to anticipate further slowdown in growth Down Under and price in more easing from the RBA. However, having now breached the 9500 level the Aussie may get a modicum of relief from some longer term investors and central bank reserve diversification flows as it tumbles to levels not seen in several years," says Boris Schlossberg at BK Asset Management.