NZ Dollar Advances After NZ FinMin Joyce's Comments
July 21 2017 - 12:03AM
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The New Zealand dollar climbed its major counterparts in the
Asian session on Friday, after the Reserve Bank of New Zealand's
Finance Minister Steven Joyce remarked that he is unperturbed by
the strength in the domestic currency as its reflects a strong
economy.
In an interview with Bloomberg, Joyce said that he is not
worried over the appreciation of the kiwi, as the NZ economy and
businesses are performing very well at the current exchange rate
levels.
The 8.9 percent appreciation in the NZ dollar over the last
months is reflecting strong economic fundamentals, he added.
Asian markets are trading mixed amid U.S. policy uncertainty and
as European Central Bank President Mario Draghi remarked that
discussions to potential changes to the central bank's quantitative
easing would take place in the autumn.
Media reports that U.S. special counsel Robert Mueller is
expanding the Russia probe to include President Donald Trump's
business dealings added to uncertainty over prospects for U.S.
healthcare reform.
Figures from Statistics New Zealand showed that New Zealand's
net migration increased in June from a year ago.
In the year to June 30, net migration reached a new record high
of 72,305, up from 69,090 in the same period of 2016.
The kiwi climbed against its most major rivals on Thursday, as
risk sentiment improved on higher oil prices.
The kiwi strengthened to 0.7439 against the greenback, a level
unseen since September 2016. The kiwi is likely to challenge
resistance around the 0.76 region.
The kiwi hit a weekly high of 83.17 against the yen, compared to
Thursday's closing value of 82.78. The next key resistance for the
kiwi is seen around the 86.00 mark.
The kiwi advanced to 1.5659 against the euro and held steady
thereafter. The pair finished Thursday's trading at 1.5717.
Continuation of the kiwi's uptrend may see it challenging
resistance around the 1.55 level.
The kiwi spiked up to a weekly high of 1.0623 against the
aussie, compared to 1.0753 hit late New York Thursday. If the kiwi
extends rise, 1.05 is likely seen as its next resistance level.
The Reserve Bank of Australia's Deputy Governor Guy Debelle said
that Australia's interest rate need not increase automatically with
the tightening of other central banks.
"Just as the policy rate in Australia did not need to decline to
the very low levels seen in other parts of the world, the fact that
other central banks increase their policy rates does not
automatically mean that the policy rate here needs to increase,"
Debelle said in Adelaide.
Looking ahead, U.K. public sector net borrowing for June is set
for release in the European session.
Canada CPI for June and retail sales for May are due in the New
York session.
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