New Zealand Dollar Outlook: GBP to NZD Exchange Rate Rises, but Gains vs Aus Dollar

Modified: Wednesday, 14 January 2015 16:04 BST - Written by Tim Boyer

STORY LINK New Zealand Dollar Outlook: GBP to NZD Exchange Rate Rises, but Gains vs Aus Dollar

Latest NZ Dollar Exchange Rate Outlook vs the Pound Sterling (GBP), and Aus Dollar (AUD)

The Pound gained against the New Zealand Dollar on Wednesday after NZ Card Spending disappointed expectations.

The overall measure declined by -0.3% in December after November’s 0.4% decrease. Moreover, Retail Card Spending dipped by -0.1% instead of growing by +0.1% as economists expected. Industry expert Tahseen Islam stated: ‘Although most retail industries were up in December, fuel spending fell significantly.

Like November, the fall in fuel spending coincided with falling fuel prices.’ However, oil isn’t the only commodity that’s taken a tumble in recent months. Black gold depreciation has had a knock-on effect to lots of other major commodities such as iron ore.

Latest Exchange Rates Today:

The New Zealand Dollar to Australian Dollar exchange rate converts +0.1 per cent higher at 1 NZD is 0.94847 AUD.
The New Zealand Dollar to Euro conversion rate is -0.16 pct lower at 0.65627 NZD/EUR.
The New Zealand Dollar to Pound Sterling conversion rate is -0.4 pct lower at 0.50836 NZD/GBP.
The New Zealand Dollar to Dollar conversion rate is -0.08 pct lower at 0.77354 NZD/USD.
The New Zealand Dollar to Rand exchange rate today is converting -0.8 per cent lower at 8.84376 NZD/ZAR.

Pound to New Zealand Dollar Exchange Rate Forecast

Meanwhile, the Pound suffered losses on Tuesday when UK data failed to impress.

The UK Consumer Price Index tumbled from 1.0% to 0.5%, far below 0.7% predictions. Bank of England Governor Mark Carney stated last year that the central bank was expecting a dip below 1.0% in the coming months and if that were to happen he’d be in a position where he’d need to write a letter to Chancellor George Osborne to explain.

However, it appears Osborne has celebrated the news of lower consumer prices.

Osborne stated: ‘Today we have welcome news that inflation is at its lowest level in modern times. We have family budgets going further and the economic recovery starting to be widely felt. We will always remain vigilant that we have lower inflation for the right reasons. And today is yet further proof our long term plan is working.’

However, the dip is expected to be a result of lower oil prices as the core measure rose from 1.2% to 1.3%.

Liberal Democrat Chief Secretary to the Treasury, Danny Alexander, stated: ‘There’s a big difference between something that is a one-off effect of the sort that we are seeing, compared to the persistent, problematic deflation that you have seen in some countries around the world over different periods in history. This helps households around the country with many of the financial pressures that people are facing.’


In addition, UK political debate is heating up as we near the general election. Events such as an election can see massive swings in exchange rates as investors weigh the impact a political shake-up could have on the economy. New Zealand Food Prices stats are out on Wednesday followed by UK RICS House Price Balances.

Both pieces of data are of low importance, but could still impact the currencies.

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