NZ dollar rises to two-week high

Published: Thu 20 Oct 2016 08:58 AM
Thursday 20 October 2016 08:45 AM
NZ dollar rises to two-week high on improved risk sentiment, stronger commodities
By Jonathan Underhill
Oct. 20 (BusinessDesk) - The New Zealand dollar rose to a two-week high as gains in equity markets and commodities such as crude oil helped underpin currencies linked to global growth such as the kiwi and the Australian dollar.
The kiwi rose to 72.28 US cents as at 8am in Wellington, having earlier touched a 2-week high of 72.48 cents, from 72.12 cents late yesterday. The trade-weighted index edged up to 77.38 from 77.29.
Stocks on Wall Street and in Europe were broadly stronger overnight while crude oil climbed to a 15-month high, helping lift the CRB Index of 19 commonly traded commodities by 0.5 percent. Meanwhile, the Federal Reserve said in its Beige Book regional survey that economic activity in the US "continued to expand during the reporting period from late August to early October,” and outlooks in most districts were "positive".
"Most equity markets gained, as did oil, helping pro-risk currencies the Australian dollar and the New Zealand dollar rise further," said Imre Speizer, market strategist at Westpac Banking Corp.
Speizer said a break above 72.30-72.40 US cents, which was a technically significant level, "would have bullish implications for the days ahead."
The kiwi has gained this week after stronger-than-expected third-quarter inflation figures suggested a cut in interest rates expected from the Reserve Bank next month may be the last in its easing cycle.
The kiwi dollar fell to 93.60 Australian cents from 94.02 cents late yesterday and edged up to 58.88 British pence from 58.71 pence. It rose to 65.86 euro cents from 65.66 cents, fell to 74.73 yen from 74.87 yen and rose to 4.8668 yuan from 4.8615 yuan.
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk

Next in Business, Science, and Tech

New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries
By: New Zealand Government
Grey Power Is Disappointed To Learn Of More Bank Closures
By: Grey Power New Zealand
Supply Chain On Brink Of Overload Says National Road Carriers
By: National Road Carriers
Annual Goods Trade Surplus At 28-year High
By: Statistics New Zealand
How Real Is That Bargain?
By: Commerce Commission
Births And Deaths: Year Ended September 2020
By: Statistics New Zealand
Okay Boomer: Kākāpō Wins Bird Of The Year 2020
By: Forest And Bird
Govt Goes “hard And Early” On RSE Workers
By: ACT New Zealand
Bringing RSE Workers Back The Right Move
By: Business NZ
Cream Of The Crop Will Get To Market
By: Auckland Business Chamber
Horticulture Industry Appreciates Government’s Decision On RSE Workers
By: Horticulture NZ
BNZ Optimistic About Year Ahead
Māori Population Estimates: At 30 June 2020
By: Statistics New Zealand
View as: DESKTOP | MOBILE © Scoop Media