The rally by the New Zealand dollar continues full steam ahead, as the Kiwi dollar hovers near multiyear highs. A combination of factors - the highest official cash rate among OECD member countries, the popularity of the carry trade trend, and robust economic activity boosted by record world commodity prices - have supported the New Zealand dollar.
- [B]Robust Manufacturing Sales Despite Advances by the Kiwi Dollar[/B]
Results of a survey conducted by the Canterbury Manufacturers? Association indicated a 19.5 percent year-on-year rise in total sales in May, with export sales up almost 21 percent and domestic sales boosted by about 18 percent. Current performance index - a combined measure of profitability and cash flow - rose from 95 in April to 96 in May, but the value of the statistic still represented a contraction.
NZ Herald - Breaking news, latest news, business, sport and entertainment - NZ Herald
-[B] Expected Residential Prices Outstrip Buyers? Budgets[/B]
A survey of the real estate sector showed that vendors? expectations of real estate prices exceeded the mean price prospective home buyers were willing to pay by about twice as much. The 14 percent year-on-year increase in average expected sale outstripped the 7 percent increase in the prices buyers were inclined to pay.
- [B]Report Commends New Zealand?s Progress towards Trade and Investment Goals[/B]
A report on New Zealand?s Individual Action Plan has commended the economy’s progress towards achieving the trade and investment liberalization and facilitation components of the APEC goals specified in the Bogor Declaration of 1994.
NZ’s Economic Reforms Cited in Independent Review | Scoop News
[B]Currency Market : NZD[/B]
The rally by the New Zealand dollar continues full steam ahead, as the Kiwi dollar hovers near multiyear highs. A combination of factors - the highest official cash rate among OECD member countries, the popularity of the carry trade trend, and robust economic activity boosted by record world commodity prices - have supported the New Zealand dollar. The NZDUSD pair soared above 0.7800 on Monday for the first time since being floated 22 years ago, as the yield differential between two-year New Zealand government bonds and US Treasuries peaked to an 8-week high. Meanwhile, the Kiwi dollar maintained its strength against the low-yielding Japanese yen to reach a 19-year high. The Kiwi dollar has retained its lead as the world?s best performing currency over the past year as a result yield differentials, but sustained intervention by the RBNZ could knock the currency out of its place.
[B]Equity Market - NZSX-50
[/B]The benchmark NZSX-50 Index closed at 4233.74, up 5.73 points on a turnover of NZD 180.6 million. The slight rally in the NZSX-50 followed a recovery staged by US stock markets, which gained as the ISM manufacturing report hit a 14-month high. Back in New Zealand, Telecom was a prominent market-mover, gaining 9 cents to NZD 462 after Citigroup raised its recommendation from “hold” to a “buy”. Shares of Auckland Airport dipped during the trading session in response to the announcement of a hike in landing charges, but closed steady at NZD 328.
[I]NZSX-50 Index (Daily Chart)
[B]Fixed-Income Market - New Zealand 10-year Government Bonds
[/B]New Zealand?s government debt continues to be coveted for providing a high yield coupled with the assurance of the highest available debt rating sovereign governments can obtain. Speculation is rife about further widening of yield differentials between New Zealand?s government debt and US Treasuries. Yields on the benchmark 10-year government bond fell from 6.699 percent on Monday to 6.648 percent on Tuesday.
[I]New Zealand 10-year Government Bonds (Daily Chart)