New Zealand Dollar Risks Further NZD/USD Loss but Could Push GBP/NZD Lower

The New Zealand Dollar edged higher against most other major currencies in the final session of the week, partially reversing otherwise steep declines after appearing to draw a bid from the market following contact with a major level of technical support on the charts.

The Pound to New Zealand Dollar rate climbed from near post-pandemic lows early in the new week but the outlook for it depends as much on whether the NZD/USD pair can hold above recent lows as it does the market’s reception of the new UK Prime Minister’s incoming economic policies.

"There looks to more substance behind the Q2 figures, with the opening up of the NZ economy a clear positive" - ASB.

The Pound to New Zealand Dollar exchange rate remains close to its early August lows but has been finding support around 1.8950 in recent sessions and could be likely to stabilise above this level in the short-term without a sustained improvement in global market risk appetite to lift the Kiwi. 

GBP/NZD pushing higher from recent lows, aided by BoE rate hike expectations.

RBNZ's Orr said he is confident the Bank is "on top" of inflation, the NZD went lower.