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

 

NZ dollar climbs above 82 US cts as stocks, commodities gain

NZ dollar climbs above 82 US cts as stocks, commodities gain; RBA looms

By Paul McBeth

Aug. 7 (BusinessDesk) - The New Zealand dollar climbed above 82 US cents for the first time in more than three months as stocks on Wall Street and commodity prices rallied, extending last week's upbeat sentiment on the prospect Spain will seek regional funding to shore up its ailing finances.

The kiwi rose as high as 82.22 US cents, and traded at 81.96 cents at 8.30am in Wellington from 81.86 cents yesterday. The trade-weighted index advanced to 73.56 from 73.49 yesterday.

Investor optimism continued during the Northern Hemisphere session with Wall Street's Standard & Poor's 500 Index up 0.2 percent, and the Thomson Reuters/Jefferies CRB index, a broad measure of commodity prices, up 0.4 percent. That stoked appetite for the trans-Tasman currencies ahead of the Reserve Bank of Australia's monetary policy review, where policymakers are expected to keep the target cash rate unchanged at 3.5 percent.

"Equities pushed higher and commodity prices are still strong, prompting the kiwi and Aussie to lead most majors as they grind higher," said Mike Jones, currency strategist at Bank of New Zealand, referring to the trans-Tasman currencies colloquially. "Investors are sitting on the side-lines ahead of the RBA, and liquidity's the thing as European holidays get underway."

Traders shrugged off reports New Zealand's Mount Tongariro erupted for the first time in more than a century, with no injuries or damage reported. Civil Defence has issued a potential threat notice for regions in the central North Island, but the National Crises Management Centre hasn't been activated.

New Zealand's central bank Governor Alan Bollard told a business audience yesterday markets are pricing in low interest rates for longer as the nation goes through an extended period of deleveraging after building up high levels of private debt during the boom time of the past decade.

Traders are betting the Reserve Bank of New Zealand will add 1 basis point to the 2.5 percent official cash rate over the next 12 months, according to the Overnight Index Swap curve.

New Zealand's labour cost index and quarterly employment survey are due for release today, though markets will pay more attention to the household labour force survey on Thursday, which includes the headline unemployment rate.

The kiwi was rose to 77.55 Australian cents from 77.44 cents yesterday, and fell to 64.09 yen from 64.21 yen. It inched up to 66.09 euro cents from 66.05 cents yesterday and was little changed at 52.52 pence from 52.50 pence.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:

Mediaworks: Reaches Agreement To Sell TV Operations To Discovery, Inc.

New Zealand’s largest independent commercial broadcaster MediaWorks and the global leader of real-life entertainment Discovery Inc. (“Discovery”) are pleased to announce they have reached a binding agreement regarding the sale of MediaWorks’ ... More>>

ALSO:

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO:

SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>

ALSO:

FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>