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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news