Sharechat Logo

NZ dollar rises to highest in almost a month as Italy fears ease, trade returns to focus

Friday 1st June 2018

Text too small?

The New Zealand dollar rose to its highest level in almost a month as fears about Italy's political crisis eased, helping lift the euro, and the US stoked concerns about a trade war with steel tariffs for Canada, Mexico and the European Union.

The kiwi dollar traded at 69.98 US cents as at 8am in Wellington and earlier reached 70.23 cents, the highest since May 8, from 69.84 cents late yesterday. The trade-weighted index gained to 73.45 from 73.26.

The leader of Italy's Five Star Movement, Luigi Di Maio, and League leader Matteo Salvini said on Thursday that they had reached an agreement on terms for forming a new government, while nominating Giuseppe Conte as prime minister, even though Italian president Sergio Mattarella has already nominated Carlo Cottarelli, a former IMF official, to that role. Meanwhile, US Commerce Secretary Wilbur Ross said NAFTA talks haven't made enough progress for Mexico and Canada to avoid tariffs on steel and aluminium, which will be imposed at rates of 25 percent and 10 percent respectively. The tariffs also apply to the EU and quota limits will be imposed on other nations.

"The ‘will they or won’t they’ on US tariffs has flipped backed to ‘will’," said Sharon Zollner, chief economist at ANZ Bank New Zealand, in a note. "However, there have been only modest currency impacts so far, perhaps as Italy looks as though it has managed to form a more euro-friendly government. The kiwi is proving resilient and looks biased higher near-term."

In New Zealand today, traders will watch for the ANZ consumer confidence index for May and terms of trade for the first quarter.

In the US on Friday, non-farm payrolls is expected to show the world's biggest economy added 190,000 jobs in May, up from 164,000 in the previous month, while the unemployment rate held at 3.9 percent and average hourly earnings rose 2.6 percent year-on-year, unchanged from the rate in the previous month.

 The kiwi rose to 92.51 Australian cents from 92.38 cents late yesterday. It traded at 59.87 euro cents from 59.85 cents. The kiwi rose to 76.14 yen from 75.85 yen and gained to 4.4854 yuan from 4.4722 yuan. It rose to 52.64 British pence from 52.50 pence.


  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:

Freightways says express package growth slowed in 2H, may flow into FY2020
BUDGET 2019: NZ debt target to be more flexible from 2022
Argosy annual profit climbs 36% on revaluation gains, pays slightly bigger dividend
NZ-owned banks says RBNZ capital proposals will make it harder to compete
Sanford earnings hit by vessel impact from crew death
Metroglass' Australian woes drag annual net profit down 69%
Fonterra says more assets under review as it cuts guidance, narrows forecast payout
Active, planning role urged for new infrastructure body
23rd May 2019 Morning Report
NZ dollar hovers below 65 US cents; trade tensions weigh on sentiment

IRG See IRG research reports