NZ Dollar Outlook: Kiwi set to take a breather in quiet week 22 Sep 2014
Related articles
- NZ More Interested in All Whites than All Blacks Sport
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Unemployment rate falls from 7.1 to 6 percent Recruitment
- OceanaGold finds new gold deposits at Fraser mine Business
NZ Dollar Outlook: Kiwi set to take a breather on light data week
By Tina Morrison
Sept. 22 (BusinessDesk) - The New Zealand dollar is lacking strong drivers this week after volatile trading last week on the back of several major events
The kiwi will probably trade between 80.50 US cents and 82.50 cents this week, according to a BusinessDesk survey of 10 currency traders and strategists. Three pick the local currency to decline, four expect a gain and three say it will probably remain relatively unchanged. The local currency ended last week little changed, belying its 80.73 US cent to 82.30 cent range. The kiwi was recently at 81.43 US cents.
The local currency appears to have few drivers for a strong direction this week as certainty returns to markets following a slew of big risk events last week, including the Federal Reserve meeting, the vote on Scottish independence from the UK and New Zealand's general election. With those events now behind it, the market may take a breather before speculators take up new positions at the start of the new quarter next week, analysts said.
"Last week was such a full-on week with a lot of events that would feed directly into risk sentiment and therefore to the New Zealand dollar," said Peter Cavanaugh, client advisor at Bancorp Treasury Services. "They have been resolved. It's not the merits of either outcome, it's the fact that the outcome has removed uncertainty. Markets hate uncertainty.
"There's very little on the horizon ahead of quarter-end next week so the market is really in a standing still phase assessing events," Cavanaugh said.
The dearth of data could leave the markets more vulnerable to some form of shock, he said.
The main local focus this week will be Fonterra Cooperative Group's annual earnings announcement on Wednesday where New Zealand's largest corporate may advise dairy farmers to expect lower prices for their milk this coming season in light of declining global dairy prices.
Falling dairy prices are also likely to hit New Zealand overseas merchandise trade data for August scheduled for publication on Wednesday. On the same day, the Reserve Bank publishes August data on the level of high-debt mortgages.
Elsewhere, China's HSBC flash manufacturing PMI tomorrow may show activity weakened a touch to 50.1 in August from 50.2 the previous month. A reading above 50 indicates expansion. China, Asia's largest economy, is closely watched as it is New Zealand's largest trading partner, and the biggest buyer of many New Zealand commodities.
In Australia this week, traders will be eyeing the Reserve Bank's financial stability report on Wednesday and speeches by governor Glenn Stephens and Tony Richards, the bank's head of payments policy department.
In the US, revised second quarter GDP data will be published on Friday.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more