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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news