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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news