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

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news