Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Kiwi at nine month highs

Kiwi at nine month highs

By Andrew May (Sales Trader, CMC Markets New Zealand)

In a major turn of events the NZD/USD cross has defied the 'bears' in a last ditch effort to retest February highs of over 84c. Breaking 0.8360 resistance in overnight trade we're currently sitting at 0.8395 and are witnessing the clear entrenchment of obtaining 0.8430c before the year end.

There have been a multitude of factors recently that have boosted the Kiwi's attraction, notwithstanding the weeks bullish progression in offshore market appeal. It began last week in the wake of the RBNZ rate decision and Monetary Policy Statement that left the OCR on hold at 2.5%. This was accompanied by comments from the RBNZ which were less dovish than expected and highlighted potential growth in the local economy. This set the wheels in motion and bolstered appeal for the commodity driven currency.

The Kiwi has been assisted over the last five days by a mix of local and international fundamentals such as Fonterra's $500mio share float, strong NZ house prices, exuberant US Non Farm payrolls, resurgent Chinese growth, and general risk appeal. This saw a 2.1% increase or 140 pts to the NZDUSD alone.

With fresh talks expected ahead of the US Federal Reserve FOMC meeting early tomorrow, expect to see the Kiwi high jump comfortably over that 84c cross bar, perhaps raising the bench to 0.8430 before the penultimate Christmas rally which should see it soar even higher fully supported through positive yield differential.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news