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

 


NZ dollar gains vs. AUD as greenback strengthens

NZ dollar gains vs. AUD as greenback strengthens

By Jonathan Underhill

Jul. 31 (BusinessDesk) - The New Zealand dollar pared its decline from an eight-week low after failing to break below key support levels as traders await US labour market data due overnight Friday local time, which may provide clues to the timing of interest rate hikes in the world's biggest economy.

The kiwi traded at 85.06 US cents at 5pm in Wellington, from 84.83 cents at 8am and from 85.10 cents late yesterday. The trade-weighted index rose to 79.71 from 79.53 yesterday.

Figures due for release on Friday in the US are expected to show the US economy added 233,000 jobs in July, according to a Reuters survey, after stacking on 288,000 the previous month. Some economists say a number above 200,000 points to growth in the economy. The US Federal Reserve's Open Market Committee’s policy statement yesterday repeated that the US central bank sees slack in the labour market and traders will likely take a strong number as a sign the Fed is closer to raising interest rates from near zero. The US dollar index, which measures the greenback against a basket of currencies, is near its highest in 10 months.

"Another strong number will get the market into thinking we've had moderately good data for a while. At some point the Fed is going to give a signal of a rate hike," said Imre Speizer, senior market strategist at Westpac Banking Corp. The kiwi has had "a very sharp fall. There's probably a bit of profit-taking from people who went short on the way down."

There is "very strong support" for the kiwi at 84 US cents, he said.

The New Zealand dollar had declined 3.3 percent this month on weaker-than-expected inflation and commodity prices and following Reserve Bank hints it may intervene to pull down the kiwi after signalling a pause in its hiking cycle. Data released by the Reserve Bank yesterday showed it sold just $2 million of local currency in the month of June.

The New Zealand dollar rose to 91.24 Australian cents from 90.66 cents yesterday.

"The Reserve Bank will be quite happy that the US dollar is stronger across the board," Kelleher said. "The kiwi is probably relatively fair value at the moment but we can move, with further US dollar strength, back towards the bottom end of the ranges again."

The kiwi traded at 63.48 euro cents from 63.45 cents yesterday and rose to 50.25 British pence from 50.22 pence. It was at 87.38 yen from 86.87 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news