Exchange Rate Forecasts: Pound Sterling, Australian Dollar & New Zealand Dollar Updates (GBP-AUD-NZD)

February 15, 2016 - Written by James Fuller

STORY LINK Exchange Rate Forecasts: Pound Sterling, Australian Dollar & New Zealand Dollar Updates (GBP-AUD-NZD)

Whole Milk Powder Price to Provoke New Zealand Dollar to Pound, Aus Dollar Exchange Rate Volatility

This week’s session on foreign exchange markets is forecast to be yet another packed one for global data releases, with tier one statistics penned in for publication from every corner of the developed world promising to provoke volatility in the currency markets.

Our leading data analyst takes a closer look at the figures that matter most and the effect which these are predicted to have on the major global currencies.

The New Zealand Dollar exchange rate complex (currency:NZD) has struggled to assert itself in the market during recent weeks thanks to the wide-ranging slump in investor sentiment which has seen global share markets plunge.

However, the Kiwi Dollar has a chance to re-establish itself tomorrow when the latest fortnightly Dairy Auction results are published. The key number to look for is the price of Whole Milk Powder – New Zealand’s number one export.

Demand for this key commodity has plunged during recent months, largely due to the slowdown in China’s once booming economy, which represented the premier export market for NZ’s dairy farmers, squeezing the sector and forcing many producers into debt.

Many analysts feel that the bottom has now been reached for Whole Milk Powder prices and if tomorrow’s trade numbers back this up, then expect the New Zealand unit to be well supported in the markets.

Which are the biggest GBP winners and losers today?

• The Pound to Australian Dollar rate is -0.67 pct lower on the day.
• The Canadian Dollar is 0.25 per cent higher compared to Monday's open.
• The Pound to Euro exchange rate is holding firm today.
• The GBP to NZD conversion rate is -0.64 pct in the red.
• The Pound is +0.07 pct higher against the Turkish Lira.
• The GBP/USD cross converts -0.22 per cent down.

GBP/NZD Forecast: UK Consumer Prices Data in Focus

Tomorrow also brings the release of this week’s centre-piece data set, as far as UK investors are concerned.

The January Consumer Price Index numbers will be closely-monitored by Sterling holders for any indication that domestic prices are continuing to edge higher.

Last month saw global oil prices slump to their lowest level for almost fourteen years, making such an outcome unlikely; the consensus amongst analysts is that the figures are likely to disappoint once again and that the Pound will suffer as a consequence.

GBP/AUD Exchange Rate Outlook: Australian Jobless Rate to Improve to Sustain Australian Dollar Exchange Rate Gains

Looking towards the end of the week, Australian jobs data is expected to determine the near-term trajectory of the Australian Dollar (currency : AUD).

The Aussie has recorded steady gains against Sterling during the past five months, but the Dollar from Down Under needs an improvement on last month’s overall jobless figure of 5.8% to sustain this improvement.

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TAGS: Australian Dollar Forecasts New Zealand Dollar Forecasts Pound Sterl Forecasts