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

 


NZ dollar holds at six-month lows before trade data

NZ dollar holds at six-month lows, may decline on weaker trade data

By Tina Morrison

Aug. 26 (BusinessDesk) - The New Zealand dollar held at six-month lows overnight ahead of trade data today which could put the local currency under further pressure.

The kiwi was little changed at 83.41 US cents at 8am in Wellington, from 83.45 cents at 5pm yesterday. The trade-weighted index edged lower to 78.75 from 78.78 yesterday.

The New Zealand dollar fell sharply yesterday amid US dollar strength as investors bet an improving US labour market may prompt the Federal Reserve to raise interest rates sooner than previously expected. The kiwi is now back at levels last seen before the Reserve Bank began raising interest rates in March, as expectations for economic growth are pulled back following lower prices for commodity exports such as dairy and logs. July trade data out today is likely to reflect the slump in dairy prices and put further pressure on kiwi, analysts said.

"The New Zealand dollar was the weakest performing currency at the start of the week," Kymberly Martin, senior market strategist at Bank of New Zealand, said in a note. "The New Zealand dollar is the victim of continued US dollar strength at the start of the week. Today's release of the New Zealand trade balance is not likely to do too much to support the New Zealand dollar.

"Below current levels there is not too much in the way of technical support for the NZD/USD until a strong band at the 82-82.40 level. Resistance lies at 84.10."

Bank of New Zealand expects the trade balance to turn to a $979 million deficit in July from a $247 million surplus in June. The report is released at 10:45am.

The New Zealand dollar rose to 89.71 Australian cents from 89.55 cents yesterday, after touching 89.48 cents, its lowest level since early December last year.

The kiwi was little changed at 63.21 euro cents from 63.18 cents yesterday and at 50.30 British pence from 50.37 pence. The local currency slipped to 86.73 yen from 86.97 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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