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

 


NZD range-trade favoured

NZD range-trade favoured


By Garry Dean (Sales Trader, CMC Markets New Zealand)


Fed Chairman Janet Yellen’s assertion last week that US interest rates may begin to rise in the second quarter of 2015 weighed heavily on the New Zealand dollar. The forecast increase in the Fed Funds Rate to 1.00% at the end of 2015, and 2.25% at the end of 2016 sparked a USD rally, which abruptly halted the NZD advance above 0.8600. This has in essence defined the trading range for the week, with resistance seen at recent highs of 0.8640, and solid support at the early March lows of 0.8440.

Concerns regarding the slowdown in Chinese growth remains a risk for the NZD, but in the short term the modest weakness seen following yesterday’s disappointing China flash PMI reading was encouraging for the NZD. Market expectation of policy stimulus from Beijing to ensure growth doesn’t fall below 7.50% is becoming more widespread. Investors may note a recent Bloomberg analyst survey showed the median estimate for full year Chinese GDP dropped to the weakest annual pace since 1990, at 7.4%. Clearly the expectation of some form of policy measures to stabilise growth is increasing, and this has again provided support for the NZD and AUD overnight.

Domestic data is continuing to impress, with last week’s December GDP reading beating RBNZ forecasts and highlighting a more broad-based recovery in the New Zealand economy. Thursday sees the only local economic release, with the February Trade Balance expected to show an improvement, led again by increasing exports. The release of China’s Leading Indicator number at 15:00 NZ time today could also provide some volatility for both the AUD and NZD.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news