The New Zealand Dollar has been totally friendless over the past 10 days and on Tuesday it once again finished bottom of our one-day performance table. Indeed, over the past 24 hours, NZD/USD has traded on ‘big figures’ of 73, 72, 71 and now this morning 70 US cents. Its overnight collapse to a low of just 0.7090 is the weakest point since January 3rd and will need to fall only a few more pips for headline writers to be reporting a fresh 2018 low. GBP/NZD is up at 1.97 for the first time this year, and if it were to break the 1.9805 level seen on November 30th, it would be the highest since the UK EU referendum in June 2016.
We highlighted yesterday the New Zealand visitor arrivals figures which showed the top source of inbound visitors in March 2018 was Australia, at 37% of all visitor arrivals followed by China and the US with 11% and the UK with 7%. The data showed 3.82 million visitors arrived in New Zealand in the year to March 2018; an increase of 276,200 (8 percent) from the previous year. Speaking in India this week, Tourism New Zealand regional manager, South and South-East Asia, Steven Dixon said, "In 2017-18, ending February, we hosted 62,000 travellers from India, which was 16.05 percent growth over the previous year. So looking at the trend this year, which began in March, we expect the growth to be in double digit as well." New Zealand government has set a target of 1,00,000 visitors from India by 2023, and if the growth continues at the current rate it will be achieved earlier. It’s time to look up the NZD/INR cross rate !
After today’s ANZAC day holiday, the next focus of attention locally in New Zealand will be the trade figures on Friday as well as the April consumer confidence numbers. The Kiwi Dollar opens in London this morning at USD0.7090, with GBP/NZD around 1.9710.