TGIF everyone. As much as we want you to be travelling, we also hope you haven’t got a trip booked straight away, as the poor old Kiwi dollar isn’t doing too well. The Coronavirus continues to have a dampening effect on the value of the NZD. With this in mind, today one Kiwi dollar will buy you:
If you are travelling soon and need to buy currency, fear not! Simply add Rate Move Guarantee to your purchase in-store, and if the rate improves within 14 days we will refund you the difference!*
Let’s take a deeper dive into what’s going on with the NZD
USD is rock solid
The USD is a force to be reckoned with at the moment and increased against most major currencies overnight after a good run of positive economic data. In particular, the Philadelphia business survey for February surged to its highest level in three years. This is the first of the monthly regional surveys to be released, and if the others imitate Philly’s surge, it could very well lead to further gains in the value of the USD.
Coronavirus: an ongoing saga
The Coronavirus continues to spread across China and the world. This week Japan saw a spike in cases, with the number of infected doubling to 84. Virus concerns are putting downward pressure on the already weak Japanese economy, which is, in turn, causing weakness in the Japanese yen. Great for Kiwi travellers taking advantage of the excellent Japan travel deals at the moment, bad for the Japanese economy.
As you can imagine, the Chinese economy is taking the biggest hit from the virus. Unfortunately, our trade ties to China mean the weakness in the Chinese yuan weighs further on the value of the NZD. This weekend G20 leaders will meet in Saudi Arabia, and discuss the effects of the Coronavirus on the global economy. The Asia-Pacific region will witness the biggest and most immediate hit, with the effects transferring through to European and American markets in time.
Domestic Data Disappoints
Like an annoying sibling, the weakness in the Aussie dollar has dragged down the value of the NZD. Today the governor of the Reserve Bank of NZ will speak. Markets expect his comments to be slightly more downbeat than the last time he spoke, mainly due to the potential economic disruption caused by the Coronavirus.
Fingers crossed we come with better news next week. Until then, keep an eye on the news and join the Travel Money Club so you can be up to date with what is happening in the big bad world of currency markets.
This blog is provided for information only and does not take into consideration your objectives, financial situation or needs. You should consider whether the information and suggestions contained in any blog entry are appropriate for you, having regard to your own objectives, financial situation and needs. While we take reasonable care in providing the blog, we give no warranties or representations that it is complete or accurate, or is appropriate for you. We are not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information and/or suggestions contained in this blog. All rates are quoted from the Travel Money NZ website and are valid as of February 21st 2020. Terms and conditions apply to Rate Move Guarantee.