NZ Dollar Outlook: Kiwi may decline amid dairy weakness 4 May 2015
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 Outlook: Kiwi may decline amid dairy weakness, greenback strength
By Tina Morrison
May 4 (BusinessDesk) - The New Zealand dollar may decline this week amid weaker prices for exported dairy products and as the greenback strengthens.
The kiwi may trade between 73.80 US cents and 77 cents this week, according to a BusinessDesk survey of 10 currency advisers. Nine expect the kiwi to fall, one says it will remain largely unchanged and none expect it to increase. It was recently trading at 75.29 US cents.
The local currency has dropped 2 percent since New Zealand's Reserve Bank took interest rate hikes off the table at its review last Thursday. It may fall further this week, weighed down by weaker prices for New Zealand's largest export commodity, with prices expected to decline in Wednesday morning's GlobalDairyTrade auction. Meanwhile the greenback is picked to strengthen leading in to a key US jobs report on Friday.
"I think we are going to see a drop in dairy prices which will have a negative impact," said Peter Cavanaugh, client adviser at Bancorp Treasury Services. "Over the course of the week, markets are going into nonfarm payrolls with a more upbeat outlook."
Economists expect US companies added 225,000 nonfarm payrolls in April after the pace slowed to 126,000 in March, less than half the previous month’s increase. The unemployment rate is estimated to have fallen to 5.4 percent from 5.5 percent in March.
Bancorp's Cavanaugh says the kiwi may be dented further should the Reserve Bank of Australia cut interest rates as expected at its review tomorrow, as traders may price in a higher chance that the Reserve Bank of New Zealand will follow suit.
Traders are currently pricing in a 73 percent chance that the RBA will cut rates at the meeting, and a 16 percent chance of the RBNZ cutting rates at its next meeting, according to the Overnight Index Swap Curve.
In New Zealand today, the ANZ Commodity Price Index is scheduled for release at 1pm.
Auckland real estate agency Barfoot & Thomson is due to publish its latest monthly housing market data tomorrow, and the Motor Industry Association is also due to provide its monthly data on new vehicle sales.
New Zealand publishes first quarter labour market data on Wednesday, with economists in a Reuters poll expecting the unemployment rate fell to 5.5 percent from 5.7 percent as growth in labour costs slowed to 0.4 percent, from a 0.5 percent pace in the previous quarter.
In Australia, the focus will be on the RBA's interest rate review tomorrow. Australia also has building approvals data today, trade data tomorrow, retail sales data on Wednesday and employment data on Thursday.
The HSBC China Purchasing Managers' Index is due out this afternoon, while the HSBC Services PMI is due Wednesday. China also has trade data on Friday and inflation on Saturday.
Elsewhere, Federal Reserve chair Janet Yellen is scheduled to give a speech to the Institute for New Economic Thinking Conference on Finance and Society in Washington DC on Wednesday.
Meanwhile, the UK has a general election on Thursday. The Bank of England's scheduled policy meeting is set for the same day, however it is delaying the announcement of its decision until May 11 to avoid any election impact.
(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