GBP/NZD: Pound to New Zealand Dollar Exchange Rate Up Slightly after Bank Holiday

Modified: Tuesday, 27 May 2014 15:07 BST - Written by Toni Johnson

STORY LINK GBP/NZD: Pound to New Zealand Dollar Exchange Rate Up Slightly after Bank Holiday

As markets reopened following the Bank holiday weekend, the Pound to New Zealand Dollar exchange rate (GBP/NZD) pairing was slightly stronger during a light trading session. As of 15:00 GMT, the Pound Sterling to New Zealand Dollar exchange rate is trading up +0.06% at 1.96863 GBP/NZD.

Over the weekend the New Zealand Dollar fluctuated in response to disappointing domestic trade data.

An 11 per cent slump in exports combined with a 4 per cent decline in imports left New Zealand’s trade surplus narrower in April.

The surplus stood at 534 million Dollars in April, down from a revised 935 million Dollars the previous month.

However, it wasn’t all bad news as exports to China (New Zealand’s main market for dairy produce) were up 38 per cent in April and posted an annual gain of 52 per cent.

In the view of one Senior Westpac economist; ‘While dairy prices in the GlobalDairyTrade auction system have fallen sharply since March, these prices related to delivery at future dates, so the impact should start to show up in the trade figures in the next few months.’

On Tuesday the GBP/NZD pairing was little-changed as markets had a stilted reaction to a report showing an increase in the level of British consumer business confidence.

A separate UK report showed that domestic mortgage approvals fell to an eight-month low.


As some investors have been concerned that a UK housing bubble could damage the nation’s economic recovery, this sign that the domestic housing market is slowing could have a positive impact.

A separate report recently published by Halifax showed a second month of declining house prices in April.

While there is little in the way of particularly influential economic data scheduled for publication this week, investors with an interest in the GBP/NZD pairing may want to make a note of Wednesday’s activity outlook and business confidence measures and Thursday’s building permits report.

As of 10:50 GMT the Pound was trading against the New Zealand Dollar in the region of 1.9701.

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