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


NZ dollar recovers from four-month low, more downside likely

NZ dollar recovers from four-month low, likely to face more downside

By Paul McBeth

Feb. 3 (BusinessDesk) - The New Zealand dollar bounced from a four-month low, though faces more downside pressure with local employment figures and Australian consumer spending data later in the week.

The kiwi rose to 81.16 US cents at 5pm in Wellington from 80.73 cents at 8am, and 80.85 cents on Friday in New York. It fell as low as 80.61 cents last Friday, the lowest since Sept. 11. The trade-weighted index was little changed at 77.09 from 77.20 at the New York close.

Investors’ appetite for the kiwi has dimmed since the Reserve Bank kept the official cash rate at 2.5 percent last week, disappointing some traders who’d been betting on a rise, and as concerns about emerging markets encouraged a return to safe-haven assets. Chinese manufacturing figures showed the weakest reading in six months.

Governor Graeme Wheeler last week said the bank will be monitoring the economic data as he prepares to hikes interest rates, and employment figures on Wednesday could change the market view as it’s a notoriously volatile data series. Australian retail sales on Thursday could also break the kiwi out of its recent range, with the local market closed for the Waitangi Day holiday and reducing liquidity.

“The kiwi’s still in the zone, just hanging on to the range since September,” said Alex Hill, head of dealing at HiFX in Auckland. “It looks like more downside is not that far away.”

Traders will keep an eye on US manufacturing figures as they gauge the strength of the world’s biggest economy, ahead of employment figures at the end of the week.

The local currency rose to 92.70 Australian cents at 5pm in Wellington from 92.32 cents on Friday in New York ahead of tomorrow’s Reserve Bank of Australia policy meeting. Australia’s central bank is expected to keep the cash rate at 2.5 percent, while removing an easing bias after stronger than expected inflation figures last month.

The kiwi rose to 83.06 yen from 82.49 yen last week, and advanced to 60.18 euro cents from 59.94 cents. It increased to 49.40 British pence from 49.18 pence on Friday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news