New Zealand Dollar Forecast to Rise vs. Dollar but Fall vs. Pound Sterling by Year-End: BNZ

A brighter outlook for the global economy amidst easing trade war fears between the U.S. and China should lead to an appreciation of the New Zealand Dollar over the remainder of 2019 say BNZ.

The New Zealand Dollar was clobbered with heavy losses overnight after first-quarter inflation data all but sealed the deal on a Reserve Bank of New Zealand (RBNZ) interest rate cut for next month, but analysts at Commonwealth Bank of Australia say the Kiwi unit should now stabilise regardless of what the central bank does next. 

The Pound and New Zealand Dollar are vying for the position of worst-performing G10 on a rolling month-on-month basis, and which currency comes out on top at the end of the coming week could well depend on the outcome of UK wage and New Zealand inflation data.

The Pound-to-New-Zealand-Dollar rate was on the back foot Friday, despite gains elsewhere for Sterling, after the Antipodean currencies were lifted by a series of Chinese economic figures that surprised on the upside. 

The New Zealand Dollar will weaken again this year as the Reserve Bank of New Zealand (RBNZ) cuts its interest rate to a new record low, according to the latest forecasts from Westpac, which should drive the Pound-to-Kiwi rate higher even as the UK economy sits in limbo half in and half out of the EU.

The technical outlook for the Pound-New Zealand Dollar rate is on balance marginally bullish while longer-dated studies suggest the NZ Dollar holds the cards.

The Pound-to-New Zealand-Dollar rate was trading around 1.9212 Monday after rising by a quarter of a percent in the previous week, although studies of the charts suggest a neutral outlook for the days ahead. 

The New Zealand Dollar fell sharply against all rivals Wednesday after the Reserve Bank of New Zealand (RBNZ) warned in its March monetary policy update that the next move in its interest rate is likely to be a cut.