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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news