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.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news