Sharechat Logo

NZ dollar sticks to tight range in risk averse markets

Wednesday 24th October 2018

Text too small?

The New Zealand dollar stuck to a right range, largely sidelined as risk-averse traders await the European Central Bank's upcoming rate decision and commentary in Frankfurt on Thursday. 

The kiwi traded at 65.61 US cents at 5pm in Wellington from 65.56 US cents at 8am in Wellington and 65.40 cents yesterday. The trade-weighted index was at 71.91 from 71.82 yesterday. 

Sentiment took a hit after the European Commission rejected Italy's plan to incur a budget deficit of 2.4 percent of gross domestic product in 2019. Investors, concerned about the prospects for European growth, are now watching for any commentary from the ECB's monetary policy meeting on the Italian situation as well as on global trade tensions in general.  

Closer to home, the kiwi eased against the Australian dollar and was trading at 92.40 Australian cents from 92.55 dollars yesterday. Imre Speizer, Westpac Banking Corp's head of NZ strategy, said the Aussie had "picked itself up" after falling on news the country's ruling Liberal-National coalition looked to have lost its one-seat parliamentary majority and now faces the threat of snap elections.

"There was a bit of a reaction after that, but it all seems fully priced in now," said Speizer. News that China is lowering housing and medical costs to boost consumption may have also given the Aussie a lift, he said.

Speizer said the focus will remain offshore and the next major event for global markets will be the US mid-term primaries in November. 

The kiwi was at 57.23 euro cents from 57.09 cents and increased to 4.5517 Chinese yuan from 4.5385 yuan. It was at 50.53 British pence from 50.44 pence yesterday and at 73.85 yen from 73.60 yen. 

New Zealand's two-year swap rate was unchanged at 2.02 percent; the 10-year swaps fell 2 basis points to 2.86 percent.

(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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report