The Pound has gained in relation to the New Zealand Dollar as of late, and this week could be important as to whether this trend continues.

The paired spiked last week as the RBNZ (the Reserve Bank Of New Zealand) reduced the official cash rate by 25bp to 2.25%, this move surprised the market and a look back at a 5 day chart makes that very clear, with GBPNZD spiking upwards and now trading within a new range of 2.12 – 2.15.

Economic news releases are limited this week in New Zealand, and I’m expecting tomorrow to be the highlight of the week as the Global Diary Auction is scheduled for release. When we consider that dairy products are New Zealand’s biggest export, I think the auction tomorrow has the potential to move pairs involving the NZD.

Commodity prices have staged a small recovery recently, some of course more than others, and New Zealand Dollar bulls as well as dairy farmers will be hoping that the recovery has spilled over into the dairy industry as well.