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


NZ dollar heads for 1.5% weekly gain as trade

NZ dollar heads for 1.5% weekly gain as trade, geopolitical tensions ease

By Rebecca Howard

April 13 (BusinessDesk) - The New Zealand dollar is heading for a 1.5 percent gain against the greenback this week as investors' jitters over a possible global trade war and a US attack against Syria abated, stoking risk appetite.

The kiwi rose to 73.72 US cents as at 5pm in Wellington from 73.58 cents yesterday and was up from 72.62 cents late last Friday in New York. The trade-weighted index rose to 75.60 from 75.43.

Investor sentiment improved across Asia at the end of the week after US President Donald Trump backtracked on his suggestion of an imminent missile attack on Syria and asked his trade advisers to examine how the US can rejoin the Comprehensive and Progressive Trans-Pacific Partnership - a deal he withdrew from in one of his first acts as president.

"The kiwi has been quietly bid all week long," said Tim Kelleher, head of institutional foreign exchange sales at ASB Bank. The kiwi remains firm against the Australian dollar as "our commodity prices are holding up, Australia's aren't. New Zealand's terms of trade are a lot better," he said. The kiwi traded at 94.84 Australian cents from 94.95 cents late yesterday.

Kelleher said he is not seeing much offshore buying of bonds so "it appears to be just currency buyers."

New Zealand's two-year swap rate lifted 2 basis points to 2.30 percent and the 10-year swap rate rose 5 basis points to 3.15 percent.

Looking ahead, Kelleher said investors will be watching for next week's dairy auction and domestic inflation data. Economists expect the data to show a 0.5 percent lift in quarterly inflation and for annual inflation to be running at 1.1 percent, according to a Bloomberg poll.

Investors will also be watching results in the latest US corporate earnings season.

The kiwi rose to 79.16 yen from 78.68 yen yesterday as investors turned away from safe-haven currencies on improving risk appetite. The New Zealand dollar gained to 59.79 euro cents from 59.53 cents. It traded at 51.80 British pence from 51.91 pence and rose to 4.6382 yuan from 4.6181 yuan.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>


Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>


IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>


Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>


Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>