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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news