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

 


NZ dollar advances as risk sentiment improves

NZ dollar advances as risk sentiment improves, luring investors to equities, kiwi

By Tina Morrison

Feb. 21 (BusinessDesk) – The New Zealand dollar advanced as risk sentiment improved, turning investors’ attention to high risk assets such as equities and the local currency.

The kiwi advanced to 82.78 US cents at 8am in Wellington from 82.57 cents at 5pm yesterday. The trade-weighted index was 77.86 from 77.83 yesterday.

Wall Street rose after a gauge of US manufacturing climbed to the highest level in nearly four years, easing concern that weakness in recent data meant the recovery in the world's largest economy was losing steam. The New Zealand and Australian currencies advanced even after weaker-than expected Chinese manufacturing figures yesterday raised concern about the strength of the regional economy.

“They both got sold heavily yesterday on the back of the China data and overnight you had a positive risk sentiment vibe going on so that pushed equities higher and risk-seeking came back in and that’s why they bought some Aussie and the kiwi,” said Westpac Banking Corp senior market strategist Imre Speizer. “Short term it’s not going to persist much more than this.”

Speizer expects the local currency may test 82.50 US cents.

New Zealand’s Treasury department will today release the latest monthly crown financial statements at 10am.

In Australia, G20 finance ministers and central bank governors are meeting in Sydney.

The New Zealand dollar slipped to 92.14 Australian cents from 92.26 cents yesterday.

The local currency advanced to 60.37 euro cents from 60.03 cents yesterday and rose to 49.71 British pence from 49.51 pence ahead of the release of UK retail sales data.

The kiwi gained to 84.70 yen from 84.14 yen yesterday ahead of the release of the Japanese central bank minutes from its last meeting.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news