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

 


NZ dollar heads for 1.2% fall for the week as USD rallies

NZ dollar heads for 1.2 percent fall for the week after greenback rallies

By Paul McBeth

Feb. 8 (BusinessDesk) - The New Zealand dollar is heading for a 1.2 percent fall against the greenback over the course of the week after the US currency rallied following a warning from European Central Bank boss Mario Draghi against the strength of the euro and weak local employment data.

The kiwi traded at 83.42 US cents at 5pm in Wellington from 83.05 cents this morning and 83.53 cents yesterday. The currency climbed to 62.19 euro cents from 61.85 cents yesterday.

ECB President Draghi kept the region's benchmark interest rate on hold and said he's concerned about the strength of the euro, sending the currency lower and supporting greenback strength.

That came a day after New Zealand government figures showed employment shrank at the end of last year and the headline jobless rate fell to 6.9 percent because fewer people were looking for jobs. A BusinessDesk survey of analysts on Monday had picked the currency to gain this week.

"The kiwi's in consolidation mode," said Tim Kelleher, head of institutional FX sales at ASB Institutional.
The currency will probably find buyers at 83.75 US cents, though "the risk is the market's quite long on the kiwi and we might see it back to 82/82.50 US cents," he said, referring to the position where an investor holds an asset on the expectation it will gain value.

Risk-sensitive assets including the Australian and New Zealand currencies were supported by upbeat Chinese trade figures, showing exports and imports rose by more than expected last month. Chinese exports climbed 25 percent in January from a year earlier, while imports advanced 29 percent.

The Reserve Bank of Australia cut its forecasts for economic growth and inflation today as investment outside its resources sector remains cautious and the mining sector shows signs of slowing down. The kiwi rose to 81.08 Australian cents from 80.98 cents yesterday.

"The kiwi/Aussie is looking quite strong. Interest differentials are widening in favour of the kiwi," Kelleher said. The yield on New Zealand's 10-year government bond was 3.77 percent at 5pm in Wellington, 28 basis points above its Australian counterpart.

New Zealand's currency was unchanged at 77.98 yen and fell to 53.06 British pence from 53.36 pence yesterday. The trade-weighted index was little changed at 75.77 from 75.71 yesterday, and is almost unchanged on the week.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

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:

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