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

 


REINZ: Market Activity And Prices Continue To Ease, First Home Buyers Start To Return To The Market

New Zealand’s winter property market continues its recent trend, slowing from the pace of sales and price rises of last year — properties stay on the market longer and median prices dip... More>>

FMA: Cigna Admits Making False And Misleading Representations
Cigna Life Insurance New Zealand Limited has admitted to making false and/or misleading representations to customers in proceedings brought by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko... More>>


Statistics: Retail Card Spending Down 0.2 Percent In July
Retail card spending fell $11 million (0.2 percent) between June 2022 and July 2022, when adjusted for seasonal effects, Stats NZ said today... More>>



ASB: Full Year Results: Building Resilience Today And For Our Future

In its 175th year, ASB has reported a cash net profit after tax of $1,418 million for the 12 months to 30 June 2022, an increase of $122 million or 9% on the prior year... More>>


Commerce Commission: Draft Determination On News Publishers’ Association’s Collective Bargaining Application
The Commerce Commission (Commission) has reached a preliminary view that it should allow the News Publishers’ Association of New Zealand (NPA) to collectively negotiate with Meta and Google... More>>


Heartland: Retirees Facing Pressure From Higher Cost Of Living And Increasing Debt In Retirement

Heartland has seen a significant increase in Reverse Mortgages being used to repay debt. Among the most affected by the increasing living costs are retirees, many of whom are trying to get by on NZ Super alone... More>>