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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news