New Zealand Dollar Exchange Rates Today: NZD Firms vs British Pound (GBP), Euro (EUR) and Aus Dollar (AUD)

October 8, 2014 - Written by James Fuller

STORY LINK New Zealand Dollar Exchange Rates Today: NZD Firms vs British Pound (GBP), Euro (EUR) and Aus Dollar (AUD)

The Pound to New Zealand Dollar (NZ) exchange rate (GBP NZD) managed to move higher on Wednesday as the market turned its attention to the release of the minutes for the latest US Federal Reserve policy meeting.

Early in the session the NZ Dollar had been trading higher as reduced market, sentiment had weighed upon most major currencies and allowed the Trans Tasman currency to push higher.

Traders had also been sitting back ahead of the Fed release but as the session wore on trader activity picked up.

The latest NZD rates are:

The New Zealand Dollar to Australian Dollar exchange rate is trading up +0.67% at 0.89402 NZD/AUD.
The New Zealand Dollar to Canadian Dollar exchange rate is trading up +0.64% at 0.87868 NZD/CAD.
The New Zealand Dollar to Euro exchange rate is trading up +0.55% at 0.62110 NZD/EUR.
The New Zealand Dollar to Pound Sterling exchange rate is trading up +0.58% at 0.48912 NZD/GBP.
The New Zealand Dollar to US Dollar exchange rate is trading up +1.12% at 0.79108 NZD/USD.

NZ Dollar to US Dollar Forecast:

The NZ Dollar vs US Dollar exchange rate (NZD USD) made gains as demand for the ‘Greenback’ softened as investors continued to take profits.

"It's come such a long way, there's probably a bit of profit taking, which is causing the US dollar to come off and as a consequence, we'd need another batch of US data to get to the next leg higher," said Mark Johnson, the senior foreign exchange dealer at OMF in Wellington. "The kiwi is probably going to have a pretty shallow bounce - it could push up to 79 (US cents), but I would imagine if that were the case there'd be good selling back up there."

The New Zealand Dollar then softened as it came under pressure from Tuesdays report by the International Monetary Fund, which suggested that global economic growth is set to slow. The IMF downgraded its forecasts for both 2014 and 2015 on the continuing stagnation of the Eurozone and the weaker than expected recovery in Japan.

The agency now sees 2014 global growth of 3.3% and 2015 growth of 3.8%, a decline of 0.1% for 2014 and 0.2% for 2015 from forecasts made in July.

Also weighing on the ‘Kiwi’ were concerns over the conflict in the Middle East and the Ebola Virus. The conflict against the self proclaimed Islamic State widened after Canada became the latest country to announce that it would be contributing to launching airstrikes. In Spain, a female nurse became the first person outside of Africa to contract the deadly virus. Worries are growing that the virus could spread in Europe.

The New Zealand Dollar is forecast to weaken against the Pound and other major peers on the back of the Federal Reserve minutes.

‘If the Fed minutes today show discussions about specific timing of their interest-rate increase, that would boost the likelihood that the next policy statement will alter the wording around keeping borrowing costs low for an extended period. That will spur US Dollar buying,’ said an analyst at IG Markets.

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