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

 


Kiwi eyes 0.8500 as pullback continues

Kiwi eyes 0.8500 as pullback continues


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

The NZ Dollar continues its downward correction from the over-extended highs of early April, when bearish technical divergences warned the upside momentum above 0.8700 was waning. Initial support is now seen at 0.8500, but with the situation in Ukraine continuing to worsen there remains an extended downside risk if the global risk appetite reduces. The NZD has performed well against the AUD however, following a benign inflation reading in Australia last week. This suggests the RBA are likely to remain on hold for some time, and favours an appreciating NZD/AUD cross.

The OCR increase from the RBNZ last week was anticipated by the market, and resulted in a modest rally which was unable to break above the 0.8640 resistance level. A further hike in June remains likely, but the RBNZ indicated the extent of further increases will be data dependent. With the TWI currently around 1.7% higher than the level forecast in the March MPS, the market is reassessing the requirement for the 200pts of hikes over two years indicated in March, suggesting the Kiwi may still be expensive around current levels.

Tonight’s GlobalDairyTrade auction result will be watched closely again following the 20% fall in the previous five auctions. The impact of these falls will be evident when the Commodity Price Index for April is released on Friday, but major direction for the week is likely to come from events in the US. Thursday’s FOMC meeting is likely to see a further $10 bio of QE tapering, which will take monthly bond purchases down to $45 bio, but FED Chairman Yellen’s speech on Friday is likely to reaffirm US rates will remain low for a considerable period. The week finishes with the April Non-Farm Payrolls on Friday night, with the market looking for the creation of over 200K new jobs and a decline in unemployment to 6.6%.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news