If you’re planning a move to New Zealand you’ll have to get to grips with how money in the nation works. The country uses New Zealand Dollars, but what does that mean for you?
To help you get your head around how the New Zealand Dollar compares to your home currency we’ve listed how much a few everyday goods would cost in New Zealand. (Average prices taken from Numbeo)
The New Zealand Dollar has seen choppy trading over the past week, with a recent fall in dairy prices triggering a significant decline yesterday.
The Reserve Bank of New Zealand held interest rates at 2.00% during Wednesday’s policy meeting. However, in its accompanying statement the central bank gave strong signals that it would be cutting interest rates further in the near future, weakening appetite for the New Zealand Dollar.
Another uptick in dairy prices offered support to the New Zealand Dollar, although risk appetite remained mixed ahead of the Fed’s September rate decision.
A combination of weak US data and strong domestic reports has continued the New Zealand Dollar’s strong advance
This past week the New Zealand Dollar has been in a stable position, having risen considerably against a number of its peers on uncertainty in the US and signs of a potential recovery in global milk prices – with dairy produce being New Zealand’s key commodity.
The New Zealand Dollar has been performing well against most of its exchange rate rivals over the course of the week, despite NZD investors having to contend with some highly disappointing domestic data.
Markets have maintained a generally positive outlook towards the New Zealand Dollar this week, with the ‘Kiwi’ continuing to shrug off the impact of the RBNZ’s recent interest rate cut.
Before the Reserve Bank of New Zealand’s (RBNZ) interest rate decision, broad-based US Dollar weakness saw the New Zealand Dollar advance across the board despite expectations for a rate cut from the central bank.
In spite of a number of attempts to rally over the past week, the bigger picture shows that the New Zealand Dollar has fallen against its two biggest rivals, the Australian Dollar and US Dollar.
Risk appetite has been somewhat volatile in the last week, with the New Zealand Dollar weakened by speculation that the Federal Reserve could yet raise interest rates before the end of the year.
The New Zealand Dollar has been soft on the whole against its rivals this week, with the latest domestic data out of the country providing no real impetus for a ‘Kiwi’ rally.
A bout of global risk appetite allowed the New Zealand Dollar to trend bullishly recently, but suggestions that the Reserve Bank of New Zealand (RBNZ) continues to struggle with low inflation have since weakened the ‘Kiwi’.