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

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news