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

 

NZ dollar hits 2-month high as investors shun greenback

NZ dollar hits 2-month high as investors shun greenback amid weaker US data

By Tina Morrison

Dec. 23 (BusinessDesk) - The New Zealand dollar touched a two-month high in illiquid trading heading into the Christmas holiday period as investors shun the greenback.

The kiwi reached 68.36 US cents overnight, and was trading at 68.06 cents at 8am in Wellington, from 68.05 cents at 5pm yesterday. The trade-weighted index was at 73.94 from 74.02 yesterday.

The US dollar index has slid 0.54 percent so far this week following a string of weaker US data, as investors refrain from taking more 'long' positions in the dollar, where they bet on further gains in the currency, after the Federal Reserve hiked interest rates last week. The final reading of US gross domestic product showed the world's largest economy grew at a 2 percent annual pace in the third quarter, slower than the 2.1 percent rate reported last month although ahead of economist estimates in a Reuters survey for a 1.9 percent rate. A separate report showed US sales of existing homes dropped 11 percent in November, the steepest decline since July 2010.

"As trading moves into lighter holiday conditions the US dollar has continued to slip, in the backdrop of mixed US data delivery overnight," Bank of New Zealand senior market strategist Kymberly Martin said in a note. "Post the Fed’s meeting, traders may be squaring up long US dollar positions, whilst others are reluctant to put on new positions into year-end."

In New Zealand today, November trade data is scheduled for release at 10:45am. BNZ said it expects a monthly trade deficit of $640 million, compared with consensus expectations for a deficit of $810 million.

The New Zealand dollar fell to 94.07 Australian cents from 94.28 cents yesterday, weakened to 62.04 euro cents from 62.32 cents, slipped to 82.38 yen from 82.52 yen. It rose to 45.96 British pence from 45.71 pence yesterday as the UK budget deficit widened, and advanced to 4.4088 yuan from 4.4076 yuan.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Building Activity Down In September Quarter
The volume of building activity in New Zealand fell 8.6 percent in the September 2021 quarter, compared with the June 2021 quarter, Stats NZ said today. Residential building activity fell by 6.4 percent in the September 2021 quarter, while non-residential building activity fell 12 percent... More>>


Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>


Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
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>>



Xero: Data Reveals ICT Expenditure Key To Small Business Sales Growth
Xero, the global small business platform, today released a new report which shows New Zealand small business ICT expenditure has increased 25 percent compared to pre-pandemic levels - more than the UK (20%) and Australia... More>>


Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>


Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... 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>>