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

 

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news