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

 


Sellers knock NZ dollar lower in overnight trading

Sellers knock NZ dollar lower in overnight trading

Jan. 29 (BusinessDesk) – The New Zealand dollar got a kicking in overnight trading but looked to be getting up off the floor this morning.

The kiwi was at 83.13 US cents at 8am, having fallen sharply from 83.50 cents to 82.80 cents, its lowest level since January 4. It had been at 83.59 cents at 5pm on Monday at the end of a day of reduced activity due to holidays in Auckland and Australia.

It fell to be 79.89 Australian cents at 8am from 80.22 cents at 5pm on Monday.

“There’s been no major headlines. Basically some technical selling came through the 83.50 cent area and on the kiwi-aussie cross ahead of the Reserve Bank of New Zealand (RBNZ) statement this week,” said Stuart Ive at HiFX.

“It is basically market positioning,” he said.

On Monday, BNZ economists said RBNZ governor Graeme Wheeler will play things down the middle at Thursday’s official cash review, keeping the official cash rate at 2.5 percent and his rhetoric vague and open-ended.

Hifx’s Ive said some people are expecting a dovish tone from the RBNZ.

“Personally I don’t expect them to come out with too much.”

The RBNZ cash-rate review is one the same morning as a US Federal Reserve Open Market Committee statement, making Thursday a big day for markets.

A speech by Wheeler on Friday and US employment data on Saturday NZ time will round out what is expected to ultimately be busy week for markets.
.
Economists are predicting 168,000 new jobs were created in January in the US, up from 155,000 in December.

The kiwi was at 61.80 euro cents from 62.16 at 5pm on Monday. The euro had surged on Friday on hopes the financial system there is improving.

Foreign exchange dealers are also monitoring the discovery of traces of Dicyandiamide, or DCD, in New Zealand milk products and say the next Fonterra milk powder auction will be interesting next Tuesday, Feb 5.

The kiwi was at 75.47 yen from 76.13 at 5pm on Monday. It was at 52.99 British pence from 53.06 pence.

The trade-weighted index was at 74.95 from 75.34.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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