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New Zealand Dollar (NZD) - BER Currency Guide

In this currency guide we look at :

  1. NZD General Info
  2. NZD Market View
  3. NZD News & Updates
  4. NZD Cross Rates

New Zealand Dollar General Info

The three letter currency code for the New Zealand Dollar is NZD and the symbol is $. It is the domestic currency in Cook Islands, New Zealand, Niue, Pitcairn and Tokelau.

The New Zealand dollar is informally called the ‘kiwi’ by foreign exchange traders and analysts due to the kiwi bird, which is native to New Zealand, being something of a national symbol for the country. The kiwi bird is also depicted on New Zealand’s one-dollar coin.

Although the New Zealand dollar is considered one of the eight FX ‘majors’, it is actually only the world’s eleventh most traded currency. Apart from the other seven majors – the US dollar, euro, yen, pound, Australian dollar, Canadian dollar and Swiss franc – the New Zealand dollar’s share of the foreign exchange market (around 2%) also falls behind that of the Mexican peso, the Chinese yuan and the Swedish krona. The currencies of China and Mexico are not considered majors due to their emerging market status, while the krona’s share of the market has only exceeded that of the New Zealand dollar fairly recently (in 2016, according to the Bank for International Settlements) and so is not yet considered ahead of New Zealand’s currency.

In the past two decades, the New Zealand dollar’s lowest value against the US dollar occurred in October 2000 when the NZD/USD exchange rate traded at just 0.3901. The currency’s two-decade high occurred in August 2011 when NZD/USD reached 0.8842, although it could be said that this high valuation was achieved twice, because in July 2014 the exchange rate reached 0.8836, just several pips shy of that achieved in 2011.

Among the majors, the New Zealand dollar is considered a riskier currency, which means that its value will fall against the larger majors (especially JPY, USD, CHF, GBP and EUR) during periods of economic uncertainty or when global geopolitical risk is elevated, or during bouts of high market volatility.

NZD - Market View

The New Zealand dollar rally lost steam in July and August.

The kiwi had been the best performing FX major in May and was second only to the Canadian dollar in June, having been supported by positive risk sentiment and strength in dairy prices. However, unlike other major central banks, investors have realised in recent months that there is little chance of the Reserve Bank of New Zealand hiking interest rates anytime soon and this has reversed the kiwi’s climb.

At its August meeting, the RBNZ maintained its previous interest rate forecast which showed no hike in New Zealand rates until the third quarter of 2019. New Zealand’s cash rate remains at a record low of 1.75%.

Following the RBNZ meeting, NZD/USD fell to 0.726 from highs above 0.755 in late July, and NZD/AUD fell to a three-month low of 0.92.

The RBNZ remains cautious on inflation which has slowed markedly in recent months. Inflation was non-existent in the second quarter (CPI growth of 0.0%), from growth of 1.0% in the first quarter.

Decision makers at the RBNZ are also less than thrilled about this year’s movement in the New Zealand dollar, which remains up more than 5% against the US dollar this year. In August, the bank expressed a desire for NZD to fall in order to help with inflation.

In July, a survey of business managers conducted by the RBNZ produced a median year-end forecast for NZD/USD of $0.71.

NZD/USD - 11:00 NZST

1 Day  1 Week: New Zealand Dollar was up against the United States Dollar with the NZD/USD at 0.7315, a rise of 1.09% but remains down for the last 7 days with a drop of -0.64%.

3 Month Trend: NZD/USD is trading higher in the 3-month range [Hi:0.7522, Lo:0.6908] and for the quarter is up 4.61%.

New Zealand Dollar - News & Market Updates

Pound Subdued after Underwhelming Inflation Figures

Sterling GBP/USD 1 Week Chart The Pound (GBP) plummeted against the majority of its peers on Tuesday as the ONS reported that the UK’s inflation rate remained flat in July. Markets reacted poorly to the news as they believe the Bank of England (BoE) will see it as a signal to delay any plans for... View article >
Posted on 16 August 2017 | 9:23 am GMT
Author: TorFX

GBP USD at One-Month Low as North Korean Tensions Fade

Sterling GBP/USD 1 Week Chart The Pound (GBP) is trading robustly against the majority of its peers this morning as the UK government outlined its plans to seek an ‘ambitious new customs arrangement’ with the EU after Brexit. While it is unclear whether EU officials are likely to be accepting of such a deal, markets... View article >
Posted on 15 August 2017 | 9:44 am GMT
Author: TorFX

Pound Strengthens as Cabinet Dispels Rumours of Brexit Split

Sterling GBP/USD 1 Week Chart The Pound (GBP) began to trend higher at the start of this week’s session following a joint statement from Chancellor Philip Hammond and Trade Secretary Liam Fox in which they called for the UK to seek a transitional Brexit deal with the EU. This follows months of speculation about a... View article >
Posted on 14 August 2017 | 9:12 am GMT
Author: TorFX

Pound Stumbles on Gloomy Growth Forecast

Sterling GBP/USD 1 Week Chart The Pound (GBP) slipped against most of its peers on Thursday as NIESR’s forecast that the UK economy only grew 0.2% in the three months to July. This was down from a previous figure of 0.3%, with the fall being attributed to growing pressure on the UK’s service sector thanks... View article >
Posted on 11 August 2017 | 9:21 am GMT
Author: TorFX

Yen at 8-Week High as Investors Flee to Safe Havens and Singapore’s Economy Outperforms

Amid growing tensions between the US and North Korea, investors fled on Thursday to the safety of the Japanese yen, gold and Treasuries. Earlier this week, US president Donald Trump had promised to lay “fire and fury” on North Korea should any attempt be made by the rogue nation to harm the US. Not one... View article >
Posted on 11 August 2017 | 6:12 am GMT
Author: Joel Wright

New Zealand Dollar Plummets as RBNZ Leaves Rates on Hold

Sterling GBP/USD 1 Week Chart After strengthening on Wednesday falling a sharp rise in geopolitical tensions, the Pound (GBP) slipped again this morning ahead of a slew of UK data.   While domestic industrial production figures impressed, the nation’s trade deficit widened, inspiring GBP fluctuations. Euro The Pound Euro (GBP EUR) exchange rate is currently... View article >
Posted on 10 August 2017 | 8:52 am GMT
Author: TorFX

Hong Kong Dollar Surprises with Best Day in 18-Months and RBNZ to Stay on Hold Until 2019

On Wednesday, a single explosive hour formed the basis of what became the Hong Kong dollar’s best day since February 2016. A little after 6am in London and 1pm in Hong Kong, the Hong Kong dollar suddenly took off, forcing USD/HKD down from levels around 7.826 to 7.8116. And while a 0.18% move might seem negligible... View article >
Posted on 10 August 2017 | 6:29 am GMT
Author: Joel Wright

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