Pound New Zealand Dollar Exchange Rate (GBP NZD) Could Fall On Tonight?s NZ Trade Data

Published: Monday, 28 January 2013 18:00 BST - Written by Tim Boyer

STORY LINK Pound New Zealand Dollar Exchange Rate (GBP NZD) Could Fall On Tonight?s NZ Trade Data

This afternoon’s major point of interest came in the US with the release of December Durable Goods Orders data which revealed that orders for goods expected to last for over three years increased by a massive 4.6% last month. The figure is always closely-watched as it is generally considered to be a reliable indicator of levels of confidence prevalent in an economy.

The results were viewed by analysts as being particularly positive given the fact that December was marked by a protracted wrangle between Democrat and Republican policymakers over the best way in which to avoid a potentially decimating ‘Fiscal Cliff’ for the US economy.

The US Durable Goods Orders data has, up to this point, failed to have any obvious beneficial effect on global stocks – Wall Street’s benchmark Dow Jones index has registered a marginal loss so far today, whilst London’s FTSE 100 has just managed to drag itself into positive territory, closing up by almost 10 points.

The Pound US Dollar exchange rate (currency : GBP USD) has come under sustained selling pressure, dropping as low as 1.5670 earlier in the session. The losses for Cable have derived partly from a tentativeness from global investors which has driven them to seek out a safe haven. However, continued selling pressure on the Pound Sterling, in anticipation of a possible credit downgrade to come for the UK economy, has also been a key driver for the move.

The next risk event of note comes later tonight in the form of the latest New Zealand Trade Balance data. A reasonable showing for the Kiwi import / export numbers could send the GBP NZD exchange rate (currency : GBP NZD) tumbling back down towards the mid-1.85s once more.

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