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

 


NZ dollar recovers from overnight weakness

NZ dollar recovers from overnight weakness

Jan. 29 (BusinessDesk) - The New Zealand dollar rose on Tuesday following a better-than-expected merchandise trade report but the main game this week remains central bank policy decisions.

The kiwi rose to 83.61 US cents at 5pm after falling as low as 82.80 cents, its lowest level since January 4, from 83.59 cents at 5pm on Monday.

Bancorp Treasury said the market may have paid too much attention to an inquiry into manufacturing by opposition parties where it has been argued that there is a crisis in the sector because of the high kiwi dollar.

Other dealers said the test of support on Monday night was in thin, holiday-affected trading and came after a technical support level was breached at 83.50 cents.

The kiwi dollar was finding support on Tuesday morning and stepped up another ten basis points on news that New Zealand reported a trade surplus of $486 million in December when the market had been expecting a $105 million deficit.

Westpac expects modest seasonally adjusted trade surpluses in the future due to firm export prices and as the strong kiwi dollar keeps a lid on import prices.

"Further out, circa 2014, we expect the Canterbury rebuild to add more to demand for imports and for the trade balance to return to deficit."

Jane Turner at ASB said Friday's announcement from the European Central Bank that 278 banks intended to repay 137 billion euro of the funds from the central bank's Long Term Refinancing Operation three-year loan facility by the end of this month eased market fears about the funding situation in Europe.

The release next week of individual national central bank's balance sheets for January should provide further detail and markets are expecting to see substantial repayment from Spanish and Italian banks.

The Reserve Bank of New Zealand (RBNZ) would be more comfortable with the receding global risks at its official cash rate review on Thursday, she said.

But the RBNZ will need to balance housing market pressures against weaker activity in the wider economy. It is expected to keep the official cash rate unchanged at 2.5 percent.

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 a busy week for markets.

The kiwi was at 80.16 Australian cents at 5pm from 80.22 cents at the same time on Monday.

It was at 62.16 euro cents from 62.16, at 76.08 yen from 76.13 and at 53.27 British pence from 53.06 pence.

The trade-weighted index was at 75.62 from 75.34.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news