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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news