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


NZ dollar rises after Chinese equity gains boost optimism

NZ dollar rises after Chinese equity gains boost optimism

By Tina Morrison

Sept. 9 (BusinessDesk) - The New Zealand dollar rose after a gain in Chinese equities boosted optimism, pushing global sharemarkets and commodities higher.

The kiwi increased to 63.48 US cents at 8am in Wellington, from 62.76 cents at 5pm yesterday. The trade-weighted index rose to 69.09 from 68.49 yesterday.

Global equity markets gained and commodity markets rallied overnight, triggered in part by a late surge in Chinese equities, amid optimism China’s government will act to support its flagging economy. That boosted investor appetite for currencies from commodity producing countries such as the kiwi, Aussie, Norwegian krone and Canadian loonie, and saw them reduce holdings of lower-risk currencies such as the yen and the Swiss franc.

"A rebound in the Chinese equity market and rebound in key commodity prices helped lift the mood in markets generally," Bank of New Zealand senior market strategist Kymberly Martin said in a note. "In this backdrop, the ‘commodity-linked’ AUD, NZD, NOK and CAD were the strongest performers. By contrast, improved sentiment resulted in the ‘safe-haven’ JPY and CHF being shunned."

BNZ's Martin said the kiwi has support at 62.50 US cents and faces resistance above 64 cents.

In New Zealand today, the Real Estate Institute is expected to publish its latest data on August property sales this afternoon. The main focus of the week is the Reserve Bank's decision on interest rates tomorrow, with governor Graeme Wheeler expected to reduce the benchmark rate a quarter point to 2.75 percent.

In the US, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota is scheduled to speak on the outlook for US monetary policy at a gathering in Evanston, Illinois. This is the last scheduled speech by a member of the Federal Open Market Committee ahead of its Sept. 16-17 meeting.

Elsewhere, the Bank of Canada is scheduled to review interest rates today, with no change expected.

The New Zealand dollar advanced to 90.32 Australian cents from 90.17 cents yesterday. In Australia today, traders will be eyeing the latest monthly Westpac consumer confidence survey. Reserve Bank of Australia deputy governor Philip Lowe is due to speak at a Committee for Economic Development of Australia event in Melbourne, while assistant governor (financial markets), Guy Debelle is scheduled to deliver a briefing on FX Global Code of Conduct in London.

The kiwi jumped to 56.68 euro cents from 55.97 cents yesterday, increased to 41.23 British pence from 40.97 pence, rose to 76.12 yen from 74.72 yen and gained to 4.0409 yuan from 3.9961 yuan.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Foodstuffs: New World & Four Square Trial NZ’s First Grocery Delivery Offer With Uber Eats

New World & Four Square have partnered with Uber Eats to unlock the first grocery offering available on the platform in Aotearoa. For New World and Four Square it’s yet another way to put New Zealanders first, particularly with those inevitable last-minute grocery needs... More>>

Digitl: Download 2.0 – Vodafone Wi-Fi Calling hits early milestone
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

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>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... 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>>