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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news