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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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