Thursday 12th April 2018
|Text too small?|
The New Zealand dollar stuck to a tight range as global sentiment was weighed down by the threat of imminent US military action in Syria.
The kiwi traded at 73.58 US cents as at 5pm in Wellington from 73.53 cents at 8am and 73.46 cents late yesterday. The trade-weighted index edged up to 75.43 from 75.28.
New Zealand's currency spent the local trading session in a 24 basis point range after investors were rattled by US President Donald Trump declaring that missiles “will be coming” in Syria and that the White House said "all options are on the table" in response to a suspected chemical weapons attack in Syria, according to the BBC. UK Prime Minister Theresa May was ready to give the go-ahead for Britain to take part in action led by the US, the BBC reported.
"The market is on tenterhooks to do with the US response to Syria and the alleged gas attacks," said Michael Johnston, a senior trader at HiFX.
The kiwi may have also gotten some support from local data such as the stronger-than-expected lift in March spending on electronic cards. Seasonally adjusted total retail spending on credit and debit cards increased 1 percent in March, Statistics New Zealand said. Economists polled by Bloomberg expected a lift of 0.5 percent.
Johnston said, however, the main drivers remain offshore, something he expects to continue.
The kiwi rose to 94.95 Australian cents from 94.76 Australian cents late yesterday and had outperformed its trans-Tasman counterpart in recent sessions due to the potential impact of a global trade war across the Tasman being greater than in New Zealand. Johnston said the cross-rate looked "stretched and unstainable" around these levels and he expects it to "come right back," noting the historical average is closer to 85 Australian cents.
The kiwi gained to 4.6181 yuan from 4.6144 yuan late yesterday and rose to 51.91 British pence from 51.79 pence. The kiwi traded at 59.53 euro cents from 59.40 cents and was little changed at 78.68 yen from 78.62 yen.
New Zealand's two-year swap rate lifted 3 basis points to 2.28 percent and the 10-year swap rate eased 1 basis point to 3.13 percent.
No comments yet
Gold Report 21st May 2019
NZ dollar falls after RBA governor flags potential rate cut
ASB reviews ownership of Aegis
Auckland Airport kicks off next phase of expansion
Cashed-up Plexure eyes acquisitions to accelerate growth as loss shrinks
Tower turns to 1H profit, lifts FY guidance
IRD should have doubled claim against Watson's Cullen Group - Professor
Investore FY profit falls 16% on smaller valuation gain, signals flat dividend for 2020
Synlait receives cease and desist letter regarding Pokeno plant
21st May 2019 Morning Report