New Zealand Dollar predicted to outperform other major currencies

The New Zealand dollar (Currency:NZD) is

The pound to New Zealand dollar exchange rate is 0.1 pct up on a day-to-day basis; GBP/NZD is at 1.9155.
The New Zealand dollar to US dollar exchange rate is 0.17 pct higher at 0.8383.
The euro to New Zealand dollar rate is 0.24 pct lower at 1.6130.

Be aware that the above are spot market inter-bank currency rates. Your bank will charge a spread when transferring your money. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you up to 5% more currency. Please learn more here.

New Zealand dollar benefits from hawkish RBNZ

It is noted that of all the major currencies, the New Zealand dollar has done the best job of holding onto its post FOMC gains.

"This resilience is thanks entirely to the hawkishness of the RBNZ and stronger economic data that supports the notion of tightening next year.  Credit card spending continued to rise according to last night's report and on an annualised basis, spending rose by the strongest amount since October 2011.  Job advertisements declined slightly but the data can be volatile on a monthly basis," says Kathy Lien at BK Asset Management.

Lien says that she favours both the New Zealand dollar and pound sterling against the other major currencies owing to the solid economic underpinning behind the two currencies.

AUD and CAD give back their gains

Lien believes that the NZD should continue to outperform other major currencies, including the Canadian and Australian dollars which gave back their post FOMC gains:

"The Australian and Canadian dollars on the other hand gave back their gains as the U.S. dollar recovered.  No economic data was released from Australia and the calendar will be exceptionally quiet this coming week.

"The Canadian dollar extended its losses on the heels of softer consumer prices.  Inflationary pressures stagnated in the month of August with year over year gains slowing to 1.1% from 1.3%.

"Core prices may be slightly hotter but price pressures are at a minimum right now, which will allow the Bank of Canada to keep monetary policy easy.  

"Canadian retail sales are scheduled for release next week and this report will play a very important role in the outlook for the loony."