FX UPDATE: RBNZ Intervention Causes NZD AUD Exchange Rate Losses

Published: 29 Sep at 1 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, South Africa,

Pound Sterling GBP
On Monday the Pound was trading in a slightly softer position against the Euro and US Dollar but was holding its own against both the ‘Aussie’ and a broadly softer ‘Kiwi’. Sterling faltered following the publication of slightly disappointing UK Mortgage Approvals and Consumer Credit figures, but the British asset could recoup losses tomorrow if the UK’s GfK Consumer Confidence gauge defies expectations and shows an improvement in sentiment. A positive revision to the UK’s second quarter growth figures would also be Pound Sterling supportive.

US Dollar USD
The US Dollar continues to enjoy bullish relationships with the majority of its most traded currency counterparts. Although several high-profile US Federal Reserve Presidents have presented conflicting arguments on the subject of interest rates, the expectation that borrowing costs will be increased soon is lending the ‘Greenback’ support. Today’s US Personal Consumption Expenditure and Pending Home Sales reports could have an impact on the appeal of the US Dollar.

Euro EUR
While the Euro surged impressively against the New Zealand Dollar, the common currency was little changed against the Pound and US Dollar ahead of the release of German inflation data. Reports published early in the day showed a positive revision to gauges of Consumer/Services Confidence for the Eurozone but negative revisions to Industrial and Economic Confidence. If Germany’s Consumer Price Index details another slowing in consumer price growth, the Euro could come under pressure in the hours ahead.

Australian Dollar AUD
As well as trending in the region of a nine-month low against the US Dollar, the Australian Dollar fell by over 0.5% against the Pound. While economic reports for Australia were lacking, an announcement from the Reserve Bank of New Zealand had a knock-on effect on the South Pacific currency.

New Zealand Dollar NZD
After the Reserve Bank of New Zealand announced that it had intervened in the currency market the ‘Kiwi’ plummeted against almost all of its rivals. The New Zealand Dollar lost over 1.0% against the Pound, Euro and US Dollar.

Canadian Dollar CAD
With Canadian data lacking at the start of the week, ‘Loonie’ movement will be reliant on global economic developments. The Canadian Dollar is currently slightly stronger against the Pound and US Dollar.

South African Rand ZAR
At the beginning of the week the Rand slumped to a fresh eight-month low against the US Dollar. The South African currency is struggling in the face of a rampant ‘Greenback’ and Federal Reserve rate hike expectations.
As of Monday, 29th September 2014, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.2799, GBP USD exchange rate was 1.6243, GBP AUD exchange rate was 1.8629, GBP NZD exchange rate was 2.0892, GBP CAD exchange rate was 1.8126, and GBP ZAR exchange rate was 18.3097.

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