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

 


NZ dollar fails to budge from key level in aimless market

NZ dollar fails to budge from key 84.60 US cent level in directionless market

By Tina Morrison

Aug. 12 (BusinessDesk) - The New Zealand dollar continues to hover around its key 200-day moving average of about 84.60 US cents with no significant economic data or central bank action to provide direction and as many traders in the northern hemisphere take summer holidays.

The kiwi was little changed at 84.61 US cents at 8am in Wellington from 84.67 cents at 5pm yesterday. The trade-weighted index was at 79.38 from 79.39 yesterday.

New Zealand's currency has been a favourite among investors this year after a series of interest rate increases boosted its yield advantage over its peers. That advantage has limited the kiwi's 3.9 percent decline over the past month amid falling 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.

"After a tumultuous week marked by geopolitical swings and surprising economic data, foreign exchange markets opened for trade in a much calmer mood as tensions between Russia and Ukraine as well as conflicts in the Middle East appear to have eased somewhat over the weekend," Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management in New York, said in a note. "Dealing has been exceedingly quiet on the first trading day of the week with no fresh economic data or political news to move the markets.

"This week in general could prove to be a snoozer in the currency market as we find ourselves at the peak of summer doldrums with most of the key players enjoying the beaches of Costa del Sol or Hamptons rather than staring at their monitors."

The kiwi will probably trade between 82.30 US cents and 86 cents this week, according to a BusinessDesk survey of 10 traders and strategists. Five predict the kiwi will remain largely unchanged this week, while three expect it may gain and two predict a drop.

There is little scheduled for the local calendar today. The Real Estate Institute expects to publish its latest monthly house price data in the coming days.

The New Zealand dollar edged up to 91.31 Australian cents from 91.21 cents yesterday ahead of a report on Australian business confidence today.

The local currency was little changed at 63.21 euro cents from 63.17 cents yesterday ahead of a ZEW reports on German and European economic sentiment tonight.

The kiwi slipped to 50.39 British pence from 50.44 pence ahead of tomorrow's releases of July employment data and the Bank of England's quarterly inflation report.

The New Zealand dollar was little changed at 86.45 yen from 86.46 yen yesterday

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news