Homepage » News » EUR/NZD » Euro New Zealand Dollar Exchange Rate Boosted as NZ Card Spending Slows

Euro New Zealand Dollar Exchange Rate Boosted as NZ Card Spending Slows

German producer prices surprised to the upside in April, boosting the Euro with fresh evidence of mounting inflationary pressure within the currency union.

The mood towards the single currency also picked up in response to the Greek parliament approving the latest raft of creditor-mandated pension cuts and tax reforms.

As this paves the way for the disbursement of the next tranche of bailout funds investors welcomed the move, even as anti-austerity protests in Athens continued.

With Angela Merkel’s CDU party maintaining a solid lead in the polls the outlook for the Eurozone appears generally positive, although the prospect of a fresh crisis has yet to entirely fade.

Given a general decline in market risk appetite this helped the Euro New Zealand Dollar exchange rate trend higher ahead of the weekend.

While the latest commentary from members of the European Central Bank (ECB) maintained a more dovish outlook on monetary policy this was not enough to weigh down the single currency at this juncture.

Forecasts point towards an upward revision in the finalised Eurozone consumer confidence index for May, even though the measure is likely to have remained in negative territory.

Any signs that optimism within the currency union is improving could bolster demand for the Euro further, though, as political jitters calm somewhat.

Confidence in the New Zealand Dollar, meanwhile, softened on the back of weaker credit card spending figures.

Lower levels of consumer spending suggest that the mood within the New Zealand economy is less positive than hoped, potentially indicating weaker economic growth.

With markets still jittery over the week’s developments in the White House the risk-sensitive ‘Kiwi’ struggled to find any particular support against its rivals.

The New Zealand Dollar could find a rallying point on the back of the latest raft of trade figures next week, which forecasts suggest could show a widened surplus.

However, if exports fail to rise in line with expectations the EUR NZD exchange rate could hold onto an uptrend.

Anything short of a significant upside surprise is unlikely to alter the policy outlook of the Reserve Bank of New Zealand (RBNZ), which looks set to maintain a dovish to neutral view for the foreseeable future.

Political developments in the US could also weigh on the appeal of the ‘Kiwi’ in coming days, particularly if the White House fails to put a lid on the latest controversy bogging down Donald Trump.

Current EUR NZD Interbank Exchange Rates

At the time of writing, the Euro New Zealand Dollar exchange rate was trending higher at 1.6194. Meanwhile, the New Zealand Dollar Euro exchange rate was slumped in the region of 0.6170.