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

 


NZ dollar heads for 0.8% weekly fall on risk aversion

NZ dollar heads for 0.8% weekly fall as Iraq, Ukraine sap risk appetite

By Paul McBeth

Aug. 8 (BusinessDesk) - The New Zealand dollar is heading for a 0.8 percent weekly decline as heightened geo-political tensions in Iraq and the Ukraine sap investors' appetite for risk-sensitive assets.

The kiwi fell to 84.45 US cents at 5pm in Wellington from 85.16 cents on Friday in New York last week. It traded at 84.84 cents at 8am and 84.56 cents yesterday. The trade-weighted index declined to 79.26 from 79.39 yesterday, and is heading for a 0.5 percent weekly fall from 79.67.

A BusinessDesk survey of eight traders and strategists on Monday predicted the kiwi would probably trade between 84 US cents and 86.05 cents this week. Four picked the kiwi to remain largely unchanged this week, and four expected it to gain.

Demand for the local currency was sapped after dairy prices fell to a two-year low, and the kiwi has remained under pressure with escalating geo-political tensions. US President Barack Obama today approved airstrikes against militants in Iraq if they threatened US personnel, while a build-up of Russian troops on the Ukraine border already had investors nervous.

"The kiwi's falling on the back of risk aversion returning, not just dairy prices," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "It's just a matter of time before the 84 US cents level breaks down."

Chinese trade figures beat expectations today, with a record trade surplus of US$47.3 billion in the year ended July 31 on a 15 percent increase in exports. Traders will be keeping tabs on Chinese inflation figures over the weekend.

The kiwi dropped to 85.93 yen at 5pm in Wellington from 86.47 yen yesterday after the Bank of Japan retained its record stimulus measures to boost the monetary base at an annual pace of 60 trillion yen to 70 trillion yen.

The local currency traded at 91.34 Australian cents at 5pm in Wellington from 91.26 cents yesterday after the Reserve Bank of Australia lowered its growth and inflation forecasts, a day after government figures showed the highest unemployment rate in 12 years

The kiwi traded at 63.22 euro cents from 63.19 cents yesterday, and was little changed at 50.23 British pence from 50.18 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news