Pure FX Blog

11 October 2017

Pound Hits 21-Week High Versus Kiwi, as NZ Retail Sales Disappoint

The pound to New Zealand dollar interbank exchange rate has hit 1.8683 today, its highest in 21 weeks, as NZ electronic card sales rose just +0.1% in September. Image credit: Annika Vogt.

The pound to New Zealand dollar interbank exchange rate has hit 1.8683 today, its highest in 21 weeks, as NZ electronic card sales rose just +0.1% in September. Image credit: Annika Vogt.

by Peter Lavelle

Welcome to Pure FX’s latest update of the pound to New Zealand dollar interbank exchange rate.

Sterling continues to climb versus the kiwi! The pound to New Zealand dollar interbank exchange rate has hit its highest in 21 weeks today, or since May 19th, at 1.8683.

The pound has jumped against the NZ dollar, because New Zealand electronic car sales rose just +0.1% in September, said Statistics New Zealand this week, below +0.7% forecasts.

In particular, sales of appliances and furniture fell in New Zealand last month. What’s more, retail sales dropped, in spite of rising immigration to New Zealand, thus weakening the kiwi dollar.

According to Westpac senior economist Michael Gordon: “The slowdown in spending is consistent with the cooling in house prices over the last year”, thereby dragging down the NZ dollar too.

This has weighed on the New Zealand dollar, because if retail sales slow in the nation of Middle Earth, New Zealand’s economic growth may decelerate too!

Pound strengthens, as UK manufacturing production hits 6-month high

Moreover, the pound has also strengthened against the New Zealand dollar, because UK manufacturing production rose by more than forecast in August, said official statistics this week.

According to the UK’s Office for National Statistics yesterday, UK manufacturing production jumped +2.8% in August compared to a year ago, above +1.9% forecasts, thus boosting the pound.

This was the sharpest rise in production in 6 months. There was “broad-based strength”, said the ONS, especially in pharmaceuticals and metal product production, thereby lifting sterling.

This has strengthened the pound, because when UK manufacturing production rises, this lifts the odds that UK GDP will rise faster in Q3, between July and September.

With all this in mind, the pound to New Zealand dollar interbank exchange rate has hit this 21-week high today!

Get a free pound to New Zealand dollar exchange rate quote

Get a free pound to New Zealand dollar exchange rate quote to get our best exchange rate, and find out how much you could save with Pure FX.

You’ll get a pound to New Zealand dollar exchange rate guaranteed to beat your high street bank.

Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email peter.lavelle@purefx.co.uk.

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