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.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news