NZ dollar has brief flurry above 79 US cts in short market 2 Oct 2014
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
NZ dollar has brief flurry above 79 US cts in short market
By Paul McBeth
Oct. 2 (BusinessDesk) - The New Zealand dollar had a brief spurt above 79 US cents as traders took advantage of a short, meaning over-sold, market to push the local currency around after its sustained drop over the past three months.
The local currency rose as high as 79.25 US cents, trading at 78.88 cents at 5pm from 78.01 cents at 8am and 77.77 cents yesterday. The trade-weighted index rose to 76.75 from 76.13 yesterday.
The kiwi dollar has slumped as much as 13 percent from a peak in July as New Zealand's economic growth starts to lose momentum in the face of falling commodity prices for logs and dairy products, two of the country's biggest exports, and as demand for the greenback rallies on heightening anticipation the Federal Reserve will start lifting interest as the world's biggest economy recovers.
"The kiwi has been slammed over the last few weeks and I think this is just traders taking advantage of a short market and knowing they can take it up to some pretty big levels," said Dan Bell, head of corporate sales at HiFX in Auckland. "It's a little bit of a short squeeze - the kiwi is being pushed around by the market."
Traders are waiting for US employment numbers on Friday in Washington for the latest gauge on the US economy, which has supported the greenback against all currencies.
The New Zealand dollar pared gains in Northern Hemisphere trading after dairy prices fell to a five-year low at Fonterra Cooperative Group's GlobalDairyTrade auction overnight Wednesday, with increased stockpiles and the Russian import ban on European Union dairy products adding to reduced Chinese demand. The ANZ Commodity Price index also showed a drop in prices for locally produced raw materials, its seventh monthly decline.
The kiwi gained to 62.27 euro cents from 61.63 cents yesterday ahead of the European Central Bank meeting, which will likely keep interest rates unchanged. President Mario Draghi's press conference will be watched for any hints the bank plans to add more stimulus to the regional economy.
The local currency slipped to 89.46 Australian cents at 5pm in Wellington from 89.60 cents yesterday, and increased to 85.68 yen from 85.46 yen. It rose to 48.56 British pence from 48.03 pence yesterday.
(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