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


NZ dollar to head lower over next month as US recovery grows

NZ dollar to head lower over next month as US recovery shows signs of life

By Paul McBeth

Nov. 25 (BusinessDesk) – The New Zealand dollar will probably sink toward 74 U.S. cents in coming weeks as American data stokes investors’ appetite for the greenback amid sparks of life in the world’s biggest economy.

The Dollar Index, a measure of the greenback against a basket of currencies, rose 0.3% to 79.78 as markets latched on to upbeat employment data and ignored softer consumer spending and home sales figures ahead of the Thanksgiving Holiday in the U.S. on Thursday. The kiwi extended its losses and Westpac Institutional Bank strategists are picking it will target 74 U.S. cents as it rounds out the year. Still, New Zealand’s long-term outlook is brighter, and they predict a pick-up in the kiwi next year as the economy continues to recover and the central bank starts hiking interest rates.

“Over the next few weeks the kiwi should be lower,” said Imre Speizer, market strategist at Westpac Banking Corp. “The domestic fundamentals argue for a higher kiwi, with higher interest rates and the terms of trade story, but that’s more likely to come next year.”

The kiwi slipped to 76.14 U.S. cents from 76.23 cents yesterday, and was little changed at 66.74 on the trade-weighted index of major trading partners’ currencies from 66.73. It rose to 63.58 yen from 63.56 yen yesterday, and fell to 77.51 Australian cents from 77.82 cents. It rose to 57.14 euro cents from 56.95 cents yesterday, and gained to 48.31 pence from 48.22 pence.

Speizer said the currency may trade between 75.80 U.S. cents and 76.50 cents today with Australian private capital expenditure data and the looming American holiday the only events of note. Thanksgiving could cause volatility in currency markets with thin liquidity magnifying moves, he said.

Jitters over European sovereign debt eased after Ireland’s government said it will slash spending by a fifth and hike taxes over the next four years to reduce its debt. Standard & Poor’s downgraded Ireland’s credit rating two notches to A, and said further cuts could happen if the austerity package’s progress stalls or the nation has to pump in more cash.


© Scoop Media

Business Headlines | Sci-Tech Headlines


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>