NZ dollar gains after Fed pledges to keep rates low for ‘extended period’
Nov. 4 (BusinessWire) – The New Zealand dollar pushed higher after the Federal Reserve said it expects to keep interest rates at “exceptionally low levels” for an extended period of time. Traders are awaiting New Zealand labour data today which is expected to show the unemployment rate is continuing to climb.
Wednesday, November 4, 2009
Wednesday, April 8, 2009
www.scoop.co.nz
NZ dollar halts slide as earnings concerns ease
April 9 – The New Zealand dollar halted its slide as the U.S. corporate earnings season begins to gather steam and shares on Wall Street edged higher.
Bed Bath and Beyond Inc., the largest U.S. home furnishings retailer, rose 24% as its profit fell less than expected, helping nudge the Standard and Poor’s 500 Index up 1.2%. Alcoa Inc., the largest aluminium company in the U.S. and first on the Dow Jones Industrial Average to report its results, posted a first-quarter loss US$497. It rose 3.5% on the Dow, erasing the previous day’s fall.
“Earnings will be the watershed – either it will reinforce the rally or things are not quite as rosy, and we may see a turn again,” said Philip Borkin, economist at ANZ National Bank. It’s too difficult to predict whether the earnings season will be the catalyst to drive the kiwi down, but “it will eventually come off,” he said.
The kiwi rose to 57.75 U.S. cents from 57.35 cents yesterday, and increased to 57.75 yen from 57.25. It gained to 81.43 Australian cents from 81.20 cents yesterday, and climbed to 43.55 euro cents from 43.44 cents.
Borkin said the kiwi may trade between 57.10 U.S. cents and 58.50 cents today.
The New Zealand and Australian currencies may fall versus the U.S. currency if Australian employment data out this today is weaker than expected. Economists predict that 25,000 more Australians will join the dole queue, lifting unemployment to 5.4%, according to a Reuters survey.
“Should this data disappoint, we could well see New Zealand/Australian dollar cross move back towards 0.8250 as investors are squeezed out of short positions,” said Danica Hampton, currency strategist at Bank of New Zealand.
NZ dollar halts slide as earnings concerns ease
April 9 – The New Zealand dollar halted its slide as the U.S. corporate earnings season begins to gather steam and shares on Wall Street edged higher.
Bed Bath and Beyond Inc., the largest U.S. home furnishings retailer, rose 24% as its profit fell less than expected, helping nudge the Standard and Poor’s 500 Index up 1.2%. Alcoa Inc., the largest aluminium company in the U.S. and first on the Dow Jones Industrial Average to report its results, posted a first-quarter loss US$497. It rose 3.5% on the Dow, erasing the previous day’s fall.
“Earnings will be the watershed – either it will reinforce the rally or things are not quite as rosy, and we may see a turn again,” said Philip Borkin, economist at ANZ National Bank. It’s too difficult to predict whether the earnings season will be the catalyst to drive the kiwi down, but “it will eventually come off,” he said.
The kiwi rose to 57.75 U.S. cents from 57.35 cents yesterday, and increased to 57.75 yen from 57.25. It gained to 81.43 Australian cents from 81.20 cents yesterday, and climbed to 43.55 euro cents from 43.44 cents.
Borkin said the kiwi may trade between 57.10 U.S. cents and 58.50 cents today.
The New Zealand and Australian currencies may fall versus the U.S. currency if Australian employment data out this today is weaker than expected. Economists predict that 25,000 more Australians will join the dole queue, lifting unemployment to 5.4%, according to a Reuters survey.
“Should this data disappoint, we could well see New Zealand/Australian dollar cross move back towards 0.8250 as investors are squeezed out of short positions,” said Danica Hampton, currency strategist at Bank of New Zealand.
Thursday, April 2, 2009
NZ dollar retreats from high
The New Zealand dollar reached its highest level against the greenback in more than 11 weeks today, then retreated.
The kiwi peaked at US59.01c but eased back to US58.56c by 5pm, which was still up from US56.80c at 5pm yesterday.
The rise came care of a fall in the US dollar as gains in Wall Street stocks eroded the greenback's safe-haven appeal.
The improvement in investors' risk appetite sparked a rally in higher-yielding, commodity currencies such as the Australian and NZ dollars.
US stocks jumped after world leaders at the Group of 20 summit agreed to pump an additional trillion US dollars into the global economy to fight the financial crisis, and on US accounting rule changes aimed at giving banks flexibility when dealing with toxic assets.
The kiwi peaked at US59.01c but eased back to US58.56c by 5pm, which was still up from US56.80c at 5pm yesterday.
The rise came care of a fall in the US dollar as gains in Wall Street stocks eroded the greenback's safe-haven appeal.
The improvement in investors' risk appetite sparked a rally in higher-yielding, commodity currencies such as the Australian and NZ dollars.
US stocks jumped after world leaders at the Group of 20 summit agreed to pump an additional trillion US dollars into the global economy to fight the financial crisis, and on US accounting rule changes aimed at giving banks flexibility when dealing with toxic assets.
NZ dollar ticks up sharply against majors; now worth 0.5837 versus buck
(RTTNews)
NZ dollar ticks up sharply against majors; now worth 0.5837 versus buck
NZ dollar ticks up sharply against majors; now worth 0.5837 versus buck
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