Sharechat Logo

NZ dollar heads for 1.5% weekly gain as trade, geopolitical tensions ease

Friday 13th April 2018

Text too small?

The New Zealand dollar is heading for a 1.5 percent gain against the greenback this week as investors' jitters over a possible global trade war and a US attack against Syria abated, stoking risk appetite. 


The kiwi rose to 73.72 US cents as at 5pm in Wellington from 73.58 cents yesterday and was up from 72.62 cents late last Friday in New York. The trade-weighted index rose to 75.60 from  75.43.


Investor sentiment improved across Asia at the end of the week after US President Donald Trump backtracked on his suggestion of an imminent missile attack on Syria and asked his trade advisers to examine how the US can rejoin the Comprehensive and Progressive Trans-Pacific Partnership  - a deal he withdrew from in one of his first acts as president. 


"The kiwi has been quietly bid all week long," said Tim Kelleher, head of institutional foreign exchange sales at ASB Bank. The kiwi remains firm against the Australian dollar as "our commodity prices are holding up, Australia's aren't. New Zealand's terms of trade are a lot better," he said. The kiwi traded at 94.84 Australian cents from 94.95 cents late yesterday.


Kelleher said he is not seeing much offshore buying of bonds so "it appears to be just currency buyers."


New Zealand's two-year swap rate lifted 2 basis points to 2.30 percent and the 10-year swap rate rose 5 basis points to 3.15 percent.


Looking ahead, Kelleher said investors will be watching for next week's dairy auction and domestic inflation data. Economists expect the data to show a 0.5 percent lift in quarterly inflation and for annual inflation to be running at 1.1 percent, according to a Bloomberg poll.


Investors will also be watching results in the latest US corporate earnings season. 


The kiwi rose to 79.16 yen from 78.68 yen yesterday as investors turned away from safe-haven currencies on improving risk appetite. The New Zealand dollar gained to 59.79 euro cents from 59.53 cents. It traded at 51.80 British pence from 51.91 pence and rose to 4.6382 yuan from 4.6181 yuan.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Telstra to join Southern Cross Cable, diluting Spark shareholding
Transpower faces sanction for handling of 2017 outage
Credit unions seek scale and profitability in five-way merger
Napier Port profit hits record as it handles record 5.1M tonnes of cargo
Govt scraps CTO role in favour of 'a small group'
MBIE involvement in spying on political parties an 'affront to democracy': SSC
NZ business confidence gets a pre-Christmas lift
Aged care, tourism first in line for temporary migrant sector agreements
Moody's puts its stamp of approval on the government's finances
RBNZ chief economist McDermott leaving central bank to join Motu

IRG See IRG research reports