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


NZ dollar advances as commodity-linked currencies buoyed

NZ dollar advances as commodity-linked currencies buoyed by improved sentiment

By Tina Morrison

Aug. 28 (BusinessDesk) - The New Zealand dollar edged up along with other commodity linked currencies, with gains limited by a stronger US dollar buoyed by better economic data.

The kiwi increased to 64.53 US cents at 8am in Wellington, from 64.35 cents at 5pm yesterday. The trade-weighted index gained to 69.82 from 69.67 cents yesterday.

Investor sentiment improved after China’s Shanghai Composite Index closed higher for the first time in six sessions with a 5.4 percent gain on the previous close. That bolstered the outlook for global growth and pushed up currencies linked to commodities such as the kiwi, and weakened safe haven currencies like the yen. The US dollar broadly strengthened after second-quarter gross domestic product was revised higher to an annual 3.7 percent rate, ahead of expectations for 3.2 percent and up from the previous estimate of 2.3 percent.

"There has been a notable turn in market sentiment overnight, assisted by upward revisions to US Q2 GDP growth," Kymberly Martin, senior market strategist at Bank of New Zealand, said in a note. "In this backdrop, the US dollar has strengthened, but the prize for best performers goes to the ‘commodity-linked’ currencies. ‘Safe haven’ currencies have underperformed.

"If general sentiment remains underpinned by further gains in Asian equity markets today, then the New Zealand dollar should remain supported."

BNZ said the kiwi has support at 64.20 US cents and faces resistance at around 65.10 cents. It expects the kiwi to trade down to 62 US cents by the end of the year, on the expectation the Federal Reserve will hike interest rates by the end of the year.

BNZ has pushed out its expected date for Fed hikes to December, from September.

Today, traders will be eyeing reports on Japanese and German inflation, and UK second-quarter GDP. This weekend, the focus will be comments and speeches from the annual Jackson Hole meeting of central bankers in the US.

The New Zealand dollar slipped to 90.04 Australian cents from 90.48 cents yesterday, advanced to 57.40 euro cents from 56.68 cents, increased to 41.86 British pence from 41.52 pence, rose to 78.08 yen from 77.16 yen, and gained to 4.1324 from 4.1242 yuan.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Energy Resources Aotearoa: New Law On Decommissioning Could Be Costly Overkill
A new law on decommissioning oil and gas fields passed by Parliament today has good intentions but is overkill, according to Energy Resources Aotearoa. "We strongly support operators taking responsibility and paying the costs for decommissioning, which is what all good operators do," says chief executive John Carnegie... More>>

Commerce Commission: News Publishers’ Association Seeks Authorisation To Engage In Collective Bargaining

News Publishers’ Association of New Zealand Incorporated seeks authorisation and provisional authorisation to engage in collective bargaining with Facebook and Google. The Commerce Commission has received applications from News Publishers’ Association of New Zealand Incorporated (NPA) seeking authorisation and provisional authorisation on behalf of itself... More>>

Reserve Bank: MPC Continues To Reduce Monetary Stimulus
The Monetary Policy Committee agreed to raise the Official Cash Rate (OCR) to 0.75 per cent. The Committee agreed it remains appropriate to continue reducing monetary stimulus so as to maintain price stability and support maximum sustainable employment... More>>

PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>

NZ Skeptics Society: Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon

Every year the New Zealand Skeptics presents its awards to people and organisations who have impressed us or dismayed us, and this year it’s been hard to pick our winners because there have been so many choices!.. More>>

REINZ: Sales Volumes Leveling Out

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 44 fewer lifestyle property sales (-2.6%) for the three months ended October 2021 than for the three months ended September 2021... More>>

BNZ: Auckland Retail Card Spending Bounces Back In Step Two
Bank of New Zealand (BNZ) card spending data released today shows one week of retail therapy at Alert Level 3 Step 2 has been enough to raise card spending in Auckland to levels greater than before the Delta lockdown... More>>