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

 


NZ dollar little changed as risk aversion hangs over market

NZ dollar little changed as risk aversion hangs over market

By Paul McBeth

Jan. 27 (BusinessDesk) - The New Zealand dollar was little changed in local trading as investors spooked by problems in some emerging economies last week were reluctant to seek riskier assets, and as trading desks in Auckland and Australia were closed for public holidays.

The kiwi traded at 82.22 US cents at 5pm in Wellington from 82.32 cents at 8am and 82.11 cents at the close of trading in New York on Friday. The trade-weighted index was almost unchanged at 77.88 from 77.86 last week.

The volume of trading was light with Auckland, New Zealand’s main financial hub, closed for the city’s anniversary day and Australia Day closing desks across the Tasman. Stocks across Asia fell as investors continued to spurn risk-sensitive assets after weak Chinese manufacturing figures last week sparked fears over emerging markets, and were further fanned by Argentina devaluing its peso and Turkey’s central bank intervening in foreign exchange markets.

That comes ahead of policy reviews by the US Federal Reserve and New Zealand’s Reserve Bank this week, which will set the direction for currency markets. The Fed may trim another US$10 billion from its US$75 billion monthly asset purchase programme, while traders are split on whether the RBNZ will start hiking interest rates at this meeting or the next.

“Markets aren’t really sure what to do today as they catch up with moves in Europe and the US,” said Stuart Ive, senior client adviser at OMF. “Barring any contagion from fears financial markets are breaking down, the kiwi will probably track largely sideways while we wait for the official lines from the RBNZ and FOMC (Federal Open Market Committee).”

A BusinessDesk survey of six traders and strategists predicts the local currency may trade between 80.80 US cents and 84.20 cents this week. Four predict the kiwi will fall this week, while two expect it to remain largely unchanged.

Today’s BNZ-BusinessNZ performance of services index gave another indication of New Zealand’s growing economic momentum, showing expansion for an eighth month, with strong reading among retailers.

The kiwi fell to 94.28 Australian cents at 5pm in Wellington from 94.76 cents on Friday in New York, and gained to 84.24 yen from 83.95 yen. It traded at 60.11 euro cents from 60.05 cents, and was little changed at 79.85 British pence from 49.83 pence last week.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news