The Kiwi Dollar hasn’t had much independent direction of its own this week with an AUD/NZD rate firmly stuck around 1.1080 until Wednesday’s New York session when it finally broke 20 pips lower to 1.1060. This break and more general USD weakness saw NZD/USD pick up almost half a cent to 0.6875; its best level in almost a week.
Yesterday we saw the latest official data on overseas visitor numbers to New Zealand. These always make fascinating reading. Short-term visitor arrivals, which include tourists, people visiting family and friends and people travelling for work, reached 3.7 million in the October year, up 8 per cent from a year earlier and a new annual record. Statistics New Zealand says the number of people going to New Zealand on holiday rose 8.6 per cent on an annual basis to 1.9 million people. During the past five years, annual visitor arrivals have regularly hit record highs, and have risen by more than one million, or 40 per cent, since the upward trend began in 2013.
Meantime, people living in New Zealand took a record 2.83 million overseas trips in the October 2017 year, up 11 percent on the October 2016 year. If the NZD stays down at current levels, then a trip from North America will be around 3% cheaper than a year ago whilst UK tourists will find the Pound buys around 10 per cent more than it did back in November 2016.