Sharechat Logo

NZD tad higher after Trump complains about high greenback

Monday 4th March 2019

Text too small?

The New Zealand dollar was slightly higher after the greenback was weighed by comments from US President Donald Trump who said the strong US dollar is hurting US competitiveness.

The kiwi traded at 68.08 US cents at 8am from 67.99 US cents late Friday in New York. The trade weighted index was at 73.78 from 73.71.

“I want a strong dollar, but I want a dollar that’s great for our country, not a dollar that is so strong that it is prohibitive for us to be dealing with other nations," Trump told  the annual Conservative Political Action Conference in Oxon Hill, Maryland, Reuters reported.  

“We have a gentleman in the Fed that loves quantitative tightening. We want a strong dollar, but let’s be reasonable,” Trump said.

Mike Shirley, senior dealer at Kiwibank, said Trump's comments, coupled with some softer US manufacturing data overnight Friday, helped push the kiwi higher.

However, it remains largely range bound and will continue to get pushed around by global sentiment. 

"It is probably likely to continue its role as a small cork in a very big sea of volatility," he said. 

With little domestic data this week, investors will be focused on the Reserve Bank of Australia's rate decision Tuesday.

ANZ's FX/rates strategist Sandeep Parekh said that weakening house prices in Australia and concerns around US-China trade and its potential impacts on Australia "has seen the market talk up chances of the RBA reducing its cash rate." However, the labour market remains strong and may give the RBA "room to breathe for now." 

Shirley said markets will also be focused on US jobs data later in the week.  This week's dairy trade auction may also garner some interest. 

The New Zealand dollar was trading at  95.94 Australian cents from 95.95, at 51.34 British pence from 51.48, at 59.80 euro cents from 59.75, at 76.09 yen from 76.05 and 4.5646 Chinese yuan from 4.5586.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

NZ dollar becalmed on US-China trade/politics nexus
Govt to pull Infrastructure Commission into Auckland port imbroglio
Wind to displace diesel for Stewart Island power
Eroad's five year target: doubling unit sales
Blinky boxes and gobbledegook: tips for choosing a cyber-security vendor
Govt support for NZME/Stuff merger difficult, not impossible, says Jarden
NZ dollar stalled; US-China trade signals remain mixed
Ryman warns NZ, Australia to take population ageing more seriously
MARKET CLOSE: NZ shares fall as US-China trade concerns weigh on markets; Ryman slips
NZ dollar stalled; US-China trade deal may be postponed

IRG See IRG research reports