The New Zealand Dollar (NZD) broke out of its recent bear channel this week recovering losses to 0.4700 (2.1280) into Friday sessions against the British Pound (GBP). We are not convinced this flurry will continue with fundamentals stacked in favour of further Pound moves. NZ Retail Sales printed down on expectations at -1.0% in the June quarter compared to -0.4% expected. This is the third straight quarter of poor data reflecting lower consumer spending. UK manufacturing also came in lower, confirming a renewed downturn in business activity. Next week’s thin calendar could see the kiwi slip.
The current interbank midrate is: NZDGBP 0.4699 GBPNZD 2.1281
The interbank range this week has been: NZDGBP 0.4632- 0.4797 GBPNZD 2.0846- 2.1588