Kiwi may hit 85 Aust cents as mining boom peak finally looms
Interest rates are also becoming more alluring on this side of the Tasman.
The New Zealand dollar may test 85 Australian cents this week as figures due out on Thursday have analysts mulling whether Australia's mining boom is finally peaking and as interest rates become more alluring on this side of the Tasman.
The kiwi fell to 83.85 Australian cents at 5pm in Wellington from as high as 84.25 cents and 83.90 cents on Friday in New York. The local currency fell to 80.76 US cents at 5pm from 81.01 cents at 8am, and 80.90 cents last week.
Australian capital expenditure figures on Thursday may show that nation's resources boom, which has underpinned its economic strength in recent years, is nearing a peak.
A BusinessDesk survey of five strategists is picking the kiwi will gain against the Australian dollar this week, with the Reserve Bank of Australia seen as more likely to cut rates and New Zealand's central bank showing a tightening bias.
"People are just piling into that trade because it looks like a fairly obvious one," says Imre Speizer, market strategist at Westpac Banking Corp in Australia. This week "85 Australian cents is a good chance".
Westpac predicts the kiwi will rise as high as 88 Australian cents over the year, he says.
The kiwi has been losing ground against the greenback as investors have rallied behind the world's reserve currency amid growing expectations the Federal Reserve will start winding back its $85 billion a month asset purchase programme.
Mr Speizer says the kiwi will probably trade within a range of 80.60 US cents and 81.20 cents with holidays in the US and London.
It fell to 81.61 yen from 81.93 yen on Friday in New York, traded at 62.50 euro cents from 62.60 cents and edged down to 53.40 British pence from 53.52 pence last week. The trade-weighted index fell to 76.23 from 76.41 last week.
(BusinessDesk)
Paul McBeth
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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Kiwi may hit 85 Aust cents as mining boom peak finally looms
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