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

 


NZ Dollar Outlook: Kiwi may consolidate amid geopolitics

NZ Dollar Outlook: Kiwi may consolidate as traders look overseas for direction

By Tina Morrison

Aug. 11 (BusinessDesk) - The New Zealand dollar may consolidate around current levels as traders look overseas for direction in a week where geopolitics are likely to be the focus in the absence of major economic data.

The kiwi will probably trade between 83 US cents and 86 cents this week, according to a BusinessDesk survey of eight traders and strategists. Four predict the kiwi will remain largely unchanged this week, while three expect it may gain and one predicts a drop. It recently traded at its 200-day moving average of about 84.60 US cents.

The New Zealand dollar has been in decline since touching a high of 88.35 US cents last month amid weakening commodity prices, a pause in interest rate hikes, Reserve Bank intervention threats and increased demand for the greenback. In a data light week, traders will be weighing sentiment on tensions in Ukraine and Iraq for currency market direction, traders said.

"In the week ahead, we expect that geopolitics will remain a key focus," Bank of New Zealand currency strategist Raiko Shareef said in a note. "The absence of top-tier data will help keep the focus on current affairs. While downside momentum for NZD/USD might be fading...the overall negative tone for NZD remains intact. But patience may be required this week."

In New Zealand this week, the Real Estate Institute expects to publish its monthly housing data for July on Tuesday or Wednesday. The report will probably reaffirm weak sales and cooling price inflation, Robin Clements, an economist at UBS New Zealand, said in a note.

On Thursday, the BNZ-BusinessNZ Performance of Manufacturing Index will probably show manufacturing remains in expansionary territory, while second quarter retail sales volumes likely rose 1 percent, Clements said.

In Australia, business confidence and house price reports are due tomorrow, followed by consumer confidence and wage inflation on Wednesday. Elsewhere, traders will be eyeing GDP data in Europe, Japan and the UK.

The US also has data on retail sales and industrial production, while Europe and the UK have inflation reports and the UK also has employment data.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news