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

 

NZD weaker as global risk aversion picks up

By Rebecca Howard

Aug. 15 (BusinessDesk) - The New Zealand dollar fell as global risk aversion picked up again after US Treasury yield curve inverted briefly overnight, often viewed as a sign of looming recession.

The kiwi was trading at 64.35 US cents at 5pm in Wellington from 64.58 at 5pm. The trade-weighted index was at 71.61 points from 71.72.

“The key driver of all of this risk-off sentiment was yield curve inversion,” said Kiwibank trader Mike Shirley.

The US Treasury yield curve inverted on Wednesday for the first time since June 2007, with yields on US 2-year notes rising above those on the 10-year note.

According to Refinitiv data it inverted as as much as minus 2.1 basis points but closed up 3.4 percent.

“This was the first time the 2-year dipped below the 10-year since 2007 – and in the past has indicated a looming US recession,” said FX/rates analyst Sandeep Parekh.

“While some take comfort in the fact that this time around the signal from the curve may be distorted by global quantitative easing, the self-fulfilling nature of economic cycles is a worry,” he said.

Today, markets will be watching for a speech by Reserve Bank of Australian deputy governor Guy Debelle on “Risks to the Outlook” at the annual Risk Australia conference in Sydney.

Australian labour market data will also be watched for any clues on whether recent rate cuts by the RBA are having an impact.

The New Zealand dollar was trading at 95.33 Australian cents from 95.05, at 53.35 British pence from 53.56, at 57.76 euro cents from 57.79, at 68.19 yen from 68.81 and at 4.5175 Chinese yuan from 4.5310.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Port Move: Cabinet Ministers Deliberate On Report

Cabinet ministers now have a copy of a report urging the government to move the Auckland port up north, but say no final decisions have been made. More>>

ALSO:

Toxicology Tests Planned: Dead Rats Washed Up On Beaches

As many as 600 rats washed up on Westport's North Beach over the weekend to the horror of locals. DOC said they may have been killed by a recent 1080 poison drop 140km away and washed down the Buller River after heavy rain battered the coast. More>>

ALSO:

Transition To Low Carbon: Mineral And Petroleum Resource Strategy

Responsibly Delivering Value – A Minerals and Petroleum Strategy for Aotearoa New Zealand: 2019-2029 has been developed to provide the direction for the sector in the transition to a low carbon and productive, sustainable and inclusive economy. More>>

ALSO:

MethaneSAT: Methane Satellite Mission Control In New Zealand

Mission Control for an international space mission to help tackle climate change will be based in New Zealand, with the Government putting $26 million towards the state-of-the-art satellite...More>>

ALSO:

Real Estate: Late Spring Surge

The continued shortage of quality real estate listings, coupled with record low mortgage interest rates have combined to add some zing to the property market over October. More>>

Wellbeing Stats: Finances Less Terrible And Less Great

According to results from the General Social Survey, the proportion of people who felt they had enough or more than enough money to meet everyday needs increased from 51 percent in 2008 to 63 percent in 2018, Stats NZ said today. More>>

ALSO: