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

 

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news