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

 


NZ dollar rises amid stronger US stocks and Europe economy

NZ dollar rises amid strong US stocks and improved Europe economy

Jan. 30 (BusinessDesk) – The New Zealand dollar is firm, reflecting indications of improving European economies and the expectation that central banks in New Zealand and the United States will keep policy easy this week.

The kiwi was at 83.73 US cents at 8am, up from 83.61 US cents at 5pm on Tuesday.

The international backdrop is looking better with the Dow Jones Industrial Average at a five-year high as this market geared up for a new day.

A positive German consumer confidence report added to the upbeat tone, as the rising euro continued to test US$1.35, a key resistance level.

“It’s nudging ever closer to that magical $1.35 level and someone is going to break through and it will possibly rise to $1.40,” Imre Speizer, senior markets strategist at Westpac said.

He said building permits data due today will not be a market mover.

Traders are waiting for a statement by the US Federal Reserve's Open Market Committee at 8.15am NZ time on Thursday, and the cash rate review by the Reserve Bank of New Zealand (RBNZ) which will follow it.

Speizer said the RBNZ comments may be more dovish than the last press release in December, which could cause a little kiwi selling.

The FOMC may reaffirm that stimulatory programmes will be kept in place after mumble previously of a possible exit.

“I’d expect Bernanke (Fed chairman Ben Bernanke) to say parts of the economy have improved but parts are still a bit questionable. That might cause US interest rates to dip. That’s a potential up for the kiwi,” he said.

Friday’s US payrolls data is a big event for the market but evidence ahead of it has been conflicting.

“It’s a crap shoot more than usual,” Speizer said.

The kiwi was at 79.99 Australian cents from 80.16 cents at 5pm on Tuesday and was at 75.94 yen from 76.08.

It was at 62.08 euro cents from 62.16, and at 53.15 British pence from 53.27.

The trade-weighted index was at 75.28 from 75.62.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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