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

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news