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

 


Kiwi may fall as greenback shrugs off mixed economic data

NZ dollar may fall as greenback shrugs off mixed economic data

By Paul McBeth

May 16 (BusinessDesk) - The New Zealand dollar may fall as traders continue to back the greenback in the face of mixed US economic data driving down interest rates in the world’s biggest economy, which would typically weigh on the American currency.

The kiwi traded at 86.42 US cents at 5pm in Wellington from 86.38 cents at 8am, down from 86.84 cents yesterday. The trade-weighted index fell to 80.34 from 80.72 yesterday.

Yields on US Treasuries fell after Federal Reserve chair Janet Yellen told policymakers the nation’s economy has further to go to achieve full health, while industrial production figures missed expectations. Better than expected employment data and accelerating inflation painted a mixed picture of the US economy, and traders continued to back the greenback despite the fall in interest rates.

“US interest rates have been falling sharply for quite a while, but the US dollar is not following,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “On that basis, the kiwi/US has got a negative bias to it in the near-term.”

If the kiwi breaks below 86.30 US cents, it may drop “towards the low 85s” as investors wait for next month’s Reserve Bank policy review, which may show a slower track of interest rate hikes, Westpac’s Speizer said.

The kiwi is heading for a 0.4 percent weekly increase from 86.10 US cents at the close of New York trading last Friday, and a 0.3 percent gain on a trade-weighted basis from 80.19.

A BusinessDesk survey of 10 traders and strategists on Monday predicted the kiwi would trade between 84.75 US cents and 87.50 cents this week. Seven predicted the kiwi would fall this week, while three picked it to remain largely unchanged.

The New Zealand dollar fell to 63 euro cents at 5pm in Wellington from 63.32 cents yesterday, and declined to 51.47 British pence from 51.77 pence. It sank to 87.72 yen from 88.43 yen yesterday, and dropped to 92.36 Australian cents from 92.61 cents.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news