The pound lost a further one and a half cents to the kiwi following negative UK data, and as the aussie rate hike put the focus on the next RBNZ rate decision.
- Fears that Britain’s fragile economic recovery is faltering were sparked after official figures revealed a surprise fall in industrial output in August.
- The data showed a 1.9% drop in manufacturing output month on month, a full 2.5% below the market prediction, encouraging further pound selling.
- The kiwi also benefited indirectly from the 25 basis point rate rise in Australia, which supported demand for higher-yielding currencies.
- The pound is now trading at record 20-year lows against the New Zealand dollar, as investors price a similar move from the New Zealand central bank into the market.
- The New Zealand dollar is up a further 0.3% this morning, as stronger global equities, higher dairy prices, and a weak US dollar helped to maintain support for risk trades.
Related posts:
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- Sterling fell just 0.03% against the kiwi yesterday, but has suffered in trading this morning
- Positive economic data from NZ, keeps the kiwi rallying higher vs sterling
- Pound fell lower against the dollar yesterday, but found some support to ease its rate of decline
- A strong kiwi dollar shrugged off weak data from the US to post gains against sterling on Friday
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