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


NZ dollar pushes top of greenback, euro ranges as ECB looms

NZ dollar pushes top of greenback, euro ranges as ECB meeting looms

By Paul McBeth

Jan. 9 (BusinessDesk) - The New Zealand dollar rose to the top of recent trading ranges against the greenback and euro as investors gear up for the European Central Bank to review its monetary policy amid signs the 17-nation bloc's economy is deteriorating.

The kiwi rose to 83.80 US cents at 5pm in Wellington from 83.50 cents at 8am and 83.55 cents yesterday. It advanced to 64.09 euro cents from 63.63 cents yesterday.

European central bankers are expected to keep the benchmark interest rate at a record-low 0.75 percent when they review monetary policy settings at their Jan. 10 meeting, as weaker economic figures spark fears about the region's ability to recover from its sovereign debt crisis. Euro-zone unemployment rose to a record 11.8 percent in November, according Eurostat data, while separate data showed Germany's exports dropped more than expected in the same month.

"The kiwi/euro might continue to rally up if people talk about cutting rates" at the ECB meeting, said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. The currency "looks a little overstretched at 64/64.50 euro cents."

The New Zealand currency has decoupled slightly from US equities, with stocks on Wall Street falling in the lead-up to fourth-quarter earnings season, and Kelleher said it will probably get sold at 84/84.50 US cents. Aluminium producer Alcoa kicked off the season after the close of trading, and signalled it expects demand for the metal to grow 7 percent this year.

New Zealand building consents fell 5.4 percent in November to 1,423 due to a small issuance of apartment consents, which are typically volatile. Excluding apartments, building consents climbed 4.6 percent in the month.

The kiwi dollar increased to 79.84 Australian cents from 79.71 cents yesterday after government figures showed consumer spending across the Tasman unexpectedly shrank 0.1 percent in November.

New Zealand's currency gained to 73.27 yen from 73.10 yen yesterday after Reuters reported the Bank of Japan will consider monetary easing this month and may double its inflation target to 2 percent.

The kiwi rose to 52.22 British pence from 51.86 pence yesterday and the trade-weighted index advanced to 75.45 from 75.16.


© Scoop Media

Business Headlines | Sci-Tech Headlines


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>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


New Bill Introduced: GST On Online Services

These measures are an important first step in the Government’s efforts to deal with increasing volumes of online services and other intangibles purchased from overseas suppliers that should, under New Zealand’s tax rules, be subject to GST. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news