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

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news