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

 

NZ dollar dips below 69 US cents


NZ dollar dips below 69 US cents as risk appetite, commodity prices fall

By Jonathan Underhill

Nov. 14 (BusinessDesk) - The New Zealand dollar fell back below 69 US cents after measures of risk appetite and global commodity prices declined and optimism grew that US tax reforms are progressing.

The kiwi dollar dropped to 68.98 US cents as at 8am in Wellington from 69.18 cents late yesterday. The trade-weighted index fell to 73.29 from 73.44.

The Chicago Board Options Exchange Volatility Index (VIX), sometimes known as Wall Street's fear gauge, fell 1.6 percent from its highest level in about three weeks overnight while the CRB Index of 19 commonly traded commodities slipped about 0.1 percent. Prices of dairy products fell for the third straight auction on the GlobalDairyTrade auction last week. Meanwhile, US President Donald Trump tweeted overnight that the US was "getting close" on tax reform.

"The decline in risk appetite has seen commodity currencies under some downward pressure overnight," said Doug Steel, economist at Bank of New Zealand, in a note. "A reduction in risk appetite back to a more normal level represents a key downside risk factor for the NZD."

Steel said there is support for the kiwi dollar at 68.20 US cents to 68.40 cents and topside resistance at about 70.50 cents.

Traders will be watching today for Australian October business confidence and Chinese retail sales and industrial production figures, while tonight Federal Reserve chair Janet Yellen is scheduled to talk on a European Central Bank panel along with her European, Japanese and British counterparts.

The kiwi traded at 52.60 British pence from 52.72 pence late yesterday. It rose to 90.44 Australian cents from 90.27 cents, fell to 59.11 euro cents from 59.50 cents and traded at 4.5799 yuan from 4.5977 yuan. It fell to 78.34 yen from 78.61 yen.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: