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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news