Pound Upside Against New Zealand Dollar Unchanged Despite NZ Ecostats
The NZ dollar continues to lose ground against the pound sterling with momentum indicators yet to be challenged by decent second-tier economic data coming out of New Zealand.
The pound continues to advance against the New Zealand dollar with the GBPNZD uptrend, in place since March 2015 remaining unbroken.
The GBP/NZD remains above the 20, 50 and 100 day averages on the daily charts which we confirm to be a signal that the trend higher remains alive.
With such firm trend momentum in place we see little reason to fight the markets and would therefore forecast the best exchange rate since 2009 come into play once more.
This level is presently seen at the 24th August high of 2.5200. Those looking to take advantage of such a move should ensure their independent currency provider has set automatic buy orders.
The decline in the kiwi dollar comes despite recent signs that the domestic economy continues to hold up relatively well.
NZ net migration continues to rise to historic levels. The net influx of people in August was 5,470 which took the annual number to 60,300 people.
It was the 13th straight month a new record was set.
The country also welcomed a record 3 million short term visitors since August 2014.
"This is a huge boost to tourism and will look to be even bigger this summer with the lower currency. The RBNZ has a double edge sword on its hands. With the migration boom adding fuel to the fire and tourism looking to surpass dairy as the biggest export sector, should they still be cutting interest rates?" note analysts at currency brokerage Tuatara Asset Management.
Latest Pound / New Zealand Dollar Exchange Rates
  | Live: 2.3114▼ -0.06%12 Month Best:2.3553 |
*Your Bank's Retail Rate
| 2.2328 - 2.242 |
**Independent Specialist | 2.279 - 2.2883 Find out why this is a better rate |
* Bank rates according to latest IMTI data.
** RationalFX dealing desk quotation.
Local credit card spending data yesterday increased for the eighth straight month in August. Spending rose 10.5% compared to the same period a year ago and takes spending to the highest level since May 2006.
However be wary that the downtrend in the value of the New Zealand dollar ultimately rests with the belief that the RBNZ will continue to pursue lower interest rates to ensure the economy remains stimulated.
Tuatara Asset Management say they are alsowary of another RBNZ rate cut in October.
“Whilst they are still trying to rescue the dairy sector a cut in interest rates would continue to put pressure on the NZ dollar and help it remain contained under 70 cents, until at least the end of the year,” say Tuatara in a note to clients.
Whilst it is speculation at this point as their September Monetary Policy Statement has the interest rate track remaining on hold for the rest of the year, the RBNZ has been one to surprise the market this year.
Importers relying on a strong New Zealand dollar should be wary of the possibility that the RBNZ will be keen to maintain pressure on the currency and interest rates.
