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

 


Earnings Season prepares return to risk

11.08 NZST, Wednesday 30 January 2013

Earnings Season prepares return to risk
By Andrew May (Sales Trader, CMC Markets New Zealand)

With the fourth quarter US earnings season in full swing pushing markets to historic highs not seen since 2007, commodities and growth currencies are witnessing ignition for a short to medium sustained break out

Early this week the Kiwi slid into free fall after a milk contamination scare for Fonterra saw milk powder sales plummet, and ensured the Kiwi US cross fell 50pts from Monday's open to 0.8310.

However, strong risk appetite gained momentum as traders departed treasuries and transitioned into the fast paced equities market. The NZD regained lost composure to currently tread support at 0.8365 with a view to pushing last year’s 0.8459 highs.

Boosted by yesterday's December trade surplus, the Kiwi has opened today at 0.8370. It’s also sitting comfortably at AUD 0.80 and has earmarked YEN 76.00 with a view to pushing to 76.50 highs. The only notable retraction is against the Euro to where it’s retested 0.62 from 0.6450 highs three weeks ago.

As long as the FOMC meeting early tomorrow morning doesn't rock the boat with further debt ceiling commitment talks and the RBNZ official cash rate keeps the status quo we should see the DOW hit the 14,000 mark comfortably thus taking the majority of Kiwi cross rates up in its wake.


http://www.cmcmarkets.com/


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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