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

 


Risk appetite keeps Kiwi bubbling into 2013

11.03 NZST, Wednesday 23 January 2013

Risk appetite keeps Kiwi bubbling into 2013


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

2013 has ushered in a positive start for the New Zealand dollar with respective highs traded against most crosses ensuring the Trade Weighted index is supported over 75pts.

With the fiscal cliff somewhat resolved into more of a 'slippery slope' and the debt ceiling 'kicked down the road', markets have pursued an appetite into risk as earnings season kicks in.

Recent central bank stimulus has provided key direction to markets, retaining interest rates lower for longer while pushing up attractiveness for commodity cross and high yielding currency pairs. The NZD/USD has welcomed in the new year over 82 cents, finding short term support at 83.70 with mid- December resistance continuing to the upside of 84.60.

Local inflation data dented the appeal for the Kiwi last week as a dovish reading came in at 0.9% causing traders to sell off their long positions and react with caution that a rate cut could be on the cards over the medium term.

Traders also unwound their positions in NZD/JPY overnight as the Bank of Japan adopted an aggressive inflation mandate of 2% with unlimited fire-power in open ended asset purchases. Markets however factored the move previously and the NZD/JPY was sold heavily from 75.73 highs not seen since August 2008 to currently trade 74.60 with short term support at 74.30.

With the first OCR review for 2013 scheduled for next Wednesday, the Reserve Bank of New Zealand will no doubt have its work cut out with concerns for retaining inflation within the 1-3% target band while placing a hand brake on a vastly tracked Kiwi dollar.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news