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


NZ dollar jumps 1 US cent overnight as risk appetite returns

NZ dollar jumps 1 US cent overnight as riskier assets return to favour

By Tina Morrison

Feb. 5 (BusinessDesk) – The New Zealand dollar jumped 1 US cent overnight as investors gained back some confidence in economic growth, favouring riskier assets such as equities and higher yielding currencies.

The kiwi touched a week-high of 82.25 US cents and was trading at 82.16 cents at 8am in Wellington from 80.94 cents at 5pm yesterday. The trade-weighted index advanced to 77.57 from 76.58.

Investors returned to riskier assets overnight, pushing up emerging market currencies and damping demand for safe haven investments such as the yen. Demand for higher growth assets pushed up US 10-year yields while bargain hunting investors stabilised stock markets.

“We have seen a reduction in risk aversion overnight,” said Stuart Ive, senior advisor at OMF.

The kiwi jumped to 83.42 yen from 81.91 yen yesterday.

The New Zealand dollar rose to 91.94 Australian cents from 91.46 cents yesterday. Traders said the kiwi is riding the coat tails of a higher Aussie after the Reserve Bank of Australia yesterday removed its easing bias, meaning it is unlikely to cut rates further this cycle.

A 1.4 percent rise in whole milk powder in the latest GlobalDairyTrade auction this morning is also helping bolster the kiwi.

Today, traders will be eyeing a report on New Zealand fourth quarter employment, with the nation’s unemployment rate expected to drop to 6 percent from 6.2 percent.

Tonight, the focus will be on the US ADP employment report ahead of the key non-farm payrolls report on Friday.

The local currency advanced to 60.76 euro cents from 59.91 cents yesterday and gained to 50.32 British pence from 49.66 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news