The New Zealand Dollar was left reeling by the Reserve Bank of New Zealand (RBNZ) Wednesday after the lender of last resort doubled the size of its government bond buying programme, ending a weeks-long Kiwi rally and prompting a short-term Pound-New Zealand Dollar rate spike in the process.
The New Zealand Dollar could draw scrutiny from the Reserve Bank of New Zealand (RBNZ) in the early hours of Wednesday after a strong comeback from its March losses, which might offer the beleaguered Pound-New Zealand Dollar rate some short-lived respite mid-week
Pound Sterling is likely to maintain a soft tone against the New Zealand Dollar over coming days, a view that is based on an assessment of the technical structure of the GBP/NZD market and observations of the fundamental drivers impacting on the two currencies.
The Pound-New Zealand Dollar rate was on course for a third consecutive loss Wednesday and could have further to fall as the exchange rate remains roadblocked on the charts and economic fortunes between the UK and New Zealand appear to diverge.
The Pound-to-New Zealand Dollar exchange rate is softer at the start of the new week but damage remains limited and the pair continues to respect a well-defined range although one study suggests ultimately Sterling should trend higher.
The New Zealand Dollar is softer at the start of May courtesy of a flip in global market sentiment into negative territory, with investors eyeing a renewed bout of tensions between China and the U.S. and ongoing concerns stock markets remain substantially overpriced at a time of unprecedented economic contraction.
The gains by the NZD will be watched by a nervous Reserve Bank of New Zealand that would prefer their currency remains contained near current levels in order to shore up the economy's recovery, it could therefore be the RBNZ that proves to be the largest headwind to any significant bouts of appreciation.
The New Zealand Dollar continued to shrug off new forecasts of negative interest rates at the Reserve Bank of New Zealand (RBNZ) on Wednesday although some projections suggest it's ony a matter of time before the Kiwi experiences another bout of weakness.