The New Zealand Dollar's Spike to Inflation Numbers Proves Short-Lived

The New Zealand Dollar traded lower across the board during the London session Wednesday as markets positioned for the release of the latest inflation report, which is due out at 11:45 pm London time. 

For GBP/NZD the overall multi-week trend is up and there is little reason at this point to expect the British Pound to come under sustained pressure. Watch New Zealand and UK inflation releases for guidance this week.

The New Zealand Dollar swept the floor with its developed world rivals during the London session Tuesday, scoring notable gains over the all of the G10 basket as markets renewed their collective appetite for risk in the wake of a conciliatory speech on global trade from President Xi Jingping. 

GBP/NZD continues its steady decline as the new trading week begins, going against the grain of the UK currency's recent generally bid tone.

GBP/NZD is looking more constructive as the new trading week begins and looks to be resuming its uptrend after a recent pull-back slowed  progress higher.

Hit by rising interest rates and risk aversion the commodity block of currencies, NZD, AUD and CAD have not faired so well of late, but what of their outlook, and will NZD come out on top of sink to third place?

The New Zealand Dollar is forecast to trade on the defensive against its developed world rivals in 2018, according to ANZ Research, now the Reserve Bank of New Zealand’s new mandate has been signed off by the government and incoming central bank chief Adrian Orr.

The Pound-to-New Zealand Dollar rate was in the process of breaking out of what was thought to be a triangle formation last week.