NZ dollar gains as oil hits six-month highs
The kiwi increased to 67.87USc at 8am in Wellington.
The New Zealand dollar gained as oil prices hit six-month highs, lifting currencies linked to commodity production while the US dollar weakened.
The kiwi increased to 67.87USc at 8am in Wellington, from 67.71USc at 5pm yesterday. The trade-weighted index advanced to 72.71 from 72.55.
Oil prices rose amid supply disruptions from Nigeria, Venezuela, and Canada, declining US production, and after Goldman Sachs turned more positive on the market. That buoyed broader commodity markets, pushing up the CRB Index, which measures a basket of global commodities, and stoking demand for currencies such as the kiwi and Aussie which are linked to commodity production. The US dollar slipped after a weaker-than-expected New York Empire State manufacturing survey.
"Oil continued to advance, lifting commodities and commodity-linked currencies overnight," ANZ Bank New Zealand senior economist Mark Smith and senior foreign exchange strategist Sam Tuck said in a note. "US dollar data disappointed overnight with few redeeming features in the headline NY Empire survey decline. However, the Empire survey is volatile and one print does not make a trend."
ANZ said the kiwi will likely trade between 67.50USc and 68.40USc today.
In New Zealand today, traders will be eyeing the Reserve Bank's quarterly survey of inflation expectations as they mull the outlook for interest rates.
In Australia, the Reserve Bank releases the minutes to its May meeting and the ANZ-Roy Morgan consumer confidence survey is published.
The New Zealand dollar advanced to 93.06Ac from 92.96Ac, gained to 59.95 euro cents from 59.86 cents, increased to 4.4240 yuan from 4.4184 yuan and was little changed at 47.14 British pence from 47.13 pence.
The kiwi jumped to ¥73.94 from ¥73.62 after Japanese officials reiterated that they were willing to intervene to weaken the nation's currency. Traders have speculated that Japan wouldn't intervene before a G7 meeting the country is hosting later this week.
(BusinessDesk)
Tina Morrison
Tue, 17 May 2016
Tue, 17 May 2016
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NZ dollar gains as oil hits six-month highs
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