The kiwi dollar posted a 2.1% gain, a movement of four and half cents, against the pound yesterday in the wake of a strong business confidence survey.
- During European trading hours the kiwi gained steadily, supported by speculation that Australia would raise their interest rate level.
- The kiwi was also buoyed by rising risk appetite as global stocks held up despite a weak US employment report on Friday.
- In late evening though, the kiwi received a solid boost after the respected NZIER survey revealed the first optimistic figure since the fourth quarter of 2006, triggering investor demand for the New Zealand currency.
- In trading this morning the kiwi has continued to gain following the decision of the RBA to move their interest rates up to 3.25%, with the sterling/NZD price nearing a 20-year low.
- However, the kiwi has trimmed its gains, currently trading just 0.1% up on the day, as New Zealand officials highlight the difference between their economy and their neighbour’s.