July 31, 2015 - Written by John Cameron
STORY LINK FX Now: Forward Move Forecast for Pound Sterling to New Zealand Dollar Exchange Rate GBP NZD
New Zealand Dollar (NZD) Trends Broadly Lower on RBNZ Rate Comments
Support for the New Zealand Dollar (currency : NZD) slumped during yesterday’s session thanks to comments from the Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler. The Kiwi central bank supremo used a set piece speech to ExportNZ in Tauranga to pre-announce further interest rate cuts for the Kiwi economy before this year is out and the Pound Sterling New Zealand Dollar exchange rate jumped to as high as 2.3754 GBP NZD as a consequence.
Pound Sterling to New Zealand Dollar (GBP/NZD) Hits Best Conversion Rate of 2.3754
Wheeler stated that, ‘we will review our growth forecasts in September Monetary Policy Statement but, at this point, we believe that several factors are supporting economic growth. These include the easing in monetary conditions, continued high levels of migration and labour force participation, ongoing growth in construction, and continued strength in the services sector.’
Wheeler also pointedly stated that, given the continued downward pressure on global dairy prices, the New Zealand Dollar was trading at above fair value; analysts forecast that this grim assessment of the current situation in the Kiwi economy could push the Pound Sterling New Zealand Dollar exchange rate Northwards towards the middle part of the 2.0000 to 3.0000 range as 2015 draws to a close.
Chinese Manufacturing Data Set to Impact NZD Exchange Rate Trading, NZD/GBP, NZD/USD Movement Predicted
Investors holding Kiwi-denominated assets will be looking to tonight’s Chinese manufacturing sector data to provide the New Zealand unit with further direction. The ongoing slowdown in the pace of expansion of China’s economy has hit NZD hard during recent months and analysts predict that this Chinese wobble is yet to fully work its way out. The June Chinese PMI Manufacturing survey printed at 50.2, marginally above the 50.0 level and signifying a slight increase in activity levels. A similar result is anticipated for July’s counterpart figure. The set-up is delicately balanced – a showing of below 50.0 from the Chinese data would drive a stake into the heart of the Kiwi Dollar and would be likely to propel the GBP NZD exchange rate back up through the 50.0 level once more. Economists forecast that anything above 50.2 would have the reverse effect.
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TAGS: Dollar Pound Forecasts Pound Euro Forecasts Pound New Zealand Dollar Forecasts