Currency News

Daily Exchange Rate Forecasts & Currency News

Pound New Zealand Dollar (GBP/NZD) Exchange Rate Rises as Chinese Exports Hit Two-Year Low

January 14, 2019 - Written by John Cameron

GBP/NZD Exchange Rate Up as Chinese Imports Fall below Expectation


The Pound New Zealand Dollar (GBP/NZD) exchange rate is up today by 0.4% and is currently trading at $1.8858.

Today’s release of China’s latest trade ecostats has hit the New Zealand Dollar (NZD) after Chinese imports and exports figures for December showed a worse-than-expected decrease, hitting a two-year low.

With the New Zealand Dollar sensitive to any signs of a slowing Chinese economy, traders fled to safe-haven currencies.

These losses, however, were buffered somewhat by China’s trade surplus with the US having reached its highest since 2006 in spite of last year’s rise of US tariffs on imports.

Raymond Yeung, a Chief Economist at ANZ, warned that a fall in exports could further lead to a ‘real risk to China’s external outlook’.

New Zealand Dollar investors, meanwhile, will be looking ahead to today’s publication of the Q4 NZIER business confidence figures, with any signs of an increase potentially providing a leg-up for the ‘Kiwi’.

These will also be followed by New Zealand’s Food Price Index figures for December, which can sometimes have a small effect on NZD exchange rates.

Pound New Zealand Dollar (GBP/NZD) Exchange Rate Rises Despite Fears of ‘Paralysis in Parliament’


Advertisement
The Pound, meanwhile, has gained on the New Zealand Dollar despite apprehension over tomorrow’s parliamentary vote on UK Prime Minister Theresa May’s Brexit deal, following her warning today that if her deal is rejected there will be a ‘paralysis in Parliament’.

Gareth Johnson, a Conservative MP for Dartford, resigned today in opposition May’s Brexit deal, commenting: ‘I have decided the time has come to place my loyalty to my country above my loyalty to the government.’

Sterling investors remain generally skittish, with expectations that the Brexit deal will be rejected tomorrow increasing, preventing the Pound making any further gains today.

GBP/NZD Forecast: Brexit No-Deal Could See Pound Fall


GBP investors will be paying close attention to tomorrow’s Commons vote on Brexit, with any signs of Theresa May’s deal being rejected likely to see Sterling plummet against the ‘Kiwi’.

NZD traders, meanwhile, will be looking ahead to tomorrow’s release of New Zealand’s GDT price index figures, with any signs of an increase potentially benefiting the New Zealand Dollar.

Following on from these will see the publication of New Zealand’s electronic card retail sales for November, with any signs of bullishness restoring positive sentiment in the ‘Kiwi’.

Sterling investors, however, will be looking ahead to Wednesday which will see a range of UK events, with the most notable being a speech by Mark Carney, Governor of the Bank of England, with any dovish comments potentially weakening the GBP/NZD exchange rate.




Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.


TAGS: Pound New Zealand Dollar Forecasts

Comments are currrently disabled