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


Kiwi mixed against major currencies in quiet trading

NZ dollar mixed against major trading partners in low liquidity, quiet holiday period

By Tina Morrison

Dec. 30 (BusinessDesk) – The New Zealand dollar was mixed against major currencies as it suffered from low liquidity and a lack of new data during the holiday period.

The kiwi was little changed at 81.55 US cents at 8am in Wellington, from 81.45 cents at the New York close and 81.56 cents at 5pm in Wellington Friday.

“It is the holiday season and nothing is happening. We have no data today and very little in terms of weekend news,” said Stuart Ive, senior advisor at OMF. “Thin liquidity likely helped exaggerate market moves. It’s very much a mixed bag at the moment.”

In an otherwise quiet week for currency markets, investors will be eyeing a speech by Federal Reserve Chairman Ben Bernanke for further clues about the central bank’s plans for tapering its stimulus. Bernanke, who is set to discuss the changing Fed in Philadelphia on Friday, might offer additional guidance after the Fed earlier this month announced it will reduce its monthly pace of bond purchases to US$75 billion in January, from US$85 billion.

US 10-year bond yields edged up above 3 percent last week, touching their highest level in more than two years on optimism a revival in the world’s largest economy will see the Fed continue with its tapering.

Philadelphia Fed Bank President Charles Plosser and Fed Governor Jeremy Stein are also scheduled to speak in Philadelphia on Friday, while Richmond Fed Bank President Jeffrey Lacker will talk about the economic outlook in Baltimore.

The kiwi will probably drift lower against the greenback until trading picks up after the holiday period, with support currently at about 81.30 US cents, said OMF’s Ive.

The New Zealand dollar advanced to 91.97 Australian cents at 8am in Wellington from 91.77 cents at 5pm on Friday.

The kiwi weakened to 59.29 euro cents from 59.38 cents on Friday, touching 58.82 cents over the weekend, its lowest level in almost four months. Comments in Germany’s Bild newspaper from Jens Weidmann, the Bundesbank chief and a member of the European Central Bank Governing Council, helped the euro. He was reported saying low inflation shouldn’t be used to justify loose monetary policy.

The local currency fell to 49.50 British pence from 49.60 pence on Friday , touching an 18-month low of 49.29 pence over the weekend. Strong British mortgage data is bolstering expectations the Bank of England may raise interest rates sooner than previously anticipated.

The New Zealand dollar rose to 85.77 yen from 85.47 yen on Friday, as a renewed appetite for risk weighed on the low-yielding Japanese currency. Also denting the yen, many economists expect the Bank of Japan to take additional easing steps to counter the impact of a sales tax hike in April, according to Reuters.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>


Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>


Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>


Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>


Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>



Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>


'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>


Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>


Get More From Scoop

Computer Power Plus
Search Scoop  
Powered by Vodafone
NZ independent news