New Zealand Dollar to US Dollar (NZD/USD) Exchange Rate Near Three-Year High
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The ‘Kiwi’ posted notable and widespread gains as New Zealand recorded a trade surplus of 818 million New Zealand Dollars in February, up from a negatively revised surplus of NZ$286 million in January and considerably more than the 600 million expected by economists.
The surplus was a record for the month of February and proved that export demand from China remained strong last month.
Exports jumped by 17 per cent on the month.
One industry expert was quoted as stating; ‘China has become an increasingly important destination for many of New Zealand’s key commodity exports with strong demand supporting higher prices. In turn, high international prices for New Zealand’s key commodity exports have boosted incomes, particularly in the rural sector.’
The ‘Kiwi’ Dollar was also lifted as a Reserve Bank official implied that exporters have adjusted to a stronger domestic currency.
Reserve Bank of New Zealand Deputy Governor Grant Spencer asserted that the measures taken by the central bank may have reduced pressure on the New Zealand Dollar.
According to Bloomberg News, foreign exchange strategist Lee Hardman said of the New Zealand Dollar’s movement; ‘The deputy governor gave an indication that exporters in New Zealand have adjusted to the higher level of the Kiwi, which the market has taken as a green flag that the RBNZ are happy to let the Kiwi strengthen further.’
However, the NZD/GBP pairing went on to trim gains slightly on Thursday as the Pound was boosted by better-than-forecast domestic retail sales figures.
The NZD/USD pairing may come off recent highs if today’s US growth data and initial jobless claims figures lend the ‘Greenback’ support.
The New Zealand Dollar is currently trading against the British Pound in the region of 0.5238 and is trading against the US Dollar in the region of 0.8669