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

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news