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

 


NZ dollar falls below 83 cts, through key support, on Italy

NZ dollar falls below 83 cts, through key support, on Italian fears

Feb. 27 (BusinessDesk) – The New Zealand dollar fell below 83 US cents and breached a key technical support level on fears the inconclusive Italian election could herald a return to populist, anti-EU policy, which could spread to other indebted nations in the region.

The New Zealand dollar fell to 82.58 US cents from 83.39 cents at 5pm in Wellington yesterday. The currency broke through its 100-day moving average of 82.94 cents in New York trading. The trade-weighted index declined to 75.59 from 76.28.

The yield on Italy’s 10-year bonds shot up 40 basis points to a 14 year high and the selloff spread to bonds in Portugal and Spain after Pier Luigi Bersani won control of the lower house Silvio Berlusconi’s party gained a blocking share of the senate. The kiwi didn’t move much after Federal Reserve chairman Ben Bernanke defended the bank’s asset purchases.

The kiwi’s break through a key support level saw the selloff “accelerate very quickly as stops got taken out,” said Stuart Ive, a strategist at HiFX. “It’s risk off on the back of the Italian election. The key to this is whether they’re going to get some sort of stability or are they going to a deeper and darker place.”

In the first of his two-day senate testimony, Bernanke said the benefits of the Fed’s vast asset purchases outweighed the risks, helping lift growth while inflation remained tame. The comments follow minutes of the last Federal Open Market Committee meeting, released last week, that showed members were divided on the size and length of the programme.

“Asset purchases are not going to be taken away any time soon, so the kiwi should find some support,” Ive said. “Exporters might buy the kiwi now at these levels.”

The kiwi fell to 63.21 euro cents from 63.84 cents and sank to 54.54 British pence from 54.78 pence. The local currency dropped to 80.67 Australian cents from 81.16 cents and fell to 75.85 yen from 76.83 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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