Tuesday 14th November 2017
|Text too small?|
The New Zealand dollar fell versus the Aussie after a bank survey showed Australian business conditions jumped to a record high last month and amid talk that a $2.2 billion option on the cross rate is set to expire this week.
The New Zealand dollar was trading at 89.99 Australian cents as at 5pm versus 90.44 Australian cents as at 8am and from 90.27 cents. It was at 68.68 US cents versus 68.98 US cents as at 8am in Wellington and 69.18 cents late yesterday.
National Australia Bank’s survey showed its index of business conditions rose 7 points to +21 in October, the highest since the survey began in 1997 and indicates that "the business sector in Australia is very strong at present, which is having positive spill-overs into the labour market and investment,” said NAB chief economist Alan Oster.
The survey came ahead of a large option expiry on Nov. 16 at an AUD/NZD strike price of A$1.11, which is where it is now trading, and Tim Kelleher, head of institutional foreign exchange sales at ASB Bank, said that would "create some selling in front of it on the kiwi cross." Given its size, it was likely to be a New York-based deal, he said.
Looking ahead, investors will be waiting for any signs of compromise on U.S. tax policy as well as a raft of central bank speakers from the US, European, British and Japanese central banks.
The kiwi traded at 52.35 British pence from 52.72 pence late yesterday and at 58.83 euro cents from 59.50 cents. it was at 4.5597 yuan from 4.5977 yuan and at 78.01 yen from 78.61 yen.
The trade-weighted index fell to 72.94 from 73.44.
New Zealand's two-year swap rate was unchanged at 2.19 percent while 10-year swaps fell 1 basis point to 3.21 percent.
No comments yet
Fliway takeover at upper end of independent adviser's range
Seeka upgrades FY guidance to within 5% of 2016 operating profit
Scott Technology outbid overseas buyer in DC Ross deal
Energy Mad settlement date pushed back to February
Renaissance Brewing says 10 parties line up for due diligence ahead of Friday deadline
Annual migration lifts in October despite more Kiwis, Aussies leaving
Stride plans $43 mln redevelopment for Waste Management in 25-year deal
Investore first-half profit more than triples on growth in rental income, lower finance costs
November 22nd Morning Report
Serko in the black as first-half revenue climbs 30%, eyes global expansion