Kiwi dollar up as commodity fears quelled

  • 30/09/2015
Kiwi dollar up as commodity fears quelled

The New Zealand dollar has gained after Swiss mining group Glencore hosed down concerns over its debt load, which boosted commodities and currencies sensitive to movements in raw material prices.

The kiwi rose to US63.43 cents at 8am on Wednesday in Wellington from US63.06c on Tuesday. The trade-weighted index advanced to 69.26 from 68.97.

The Thompson Reuters Core Commodity CRB Index, a measure of 19 commodity prices, rose 0.4 per cent after mining company Glencore moved to dispel fears it might fail if commodity prices didn't recover, saying the business was "operationally and financially robust".

That quelled some of Tuesday's market volatility, and helped boost commodity-linked currencies such as the kiwi and Australian dollars.

"Sentiment settled a little bit last night after Glencore said they don't have any liquidity problems, and that started the early bounce in European equities," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand in Auckland.

US data remains the major event risk this week with Chicago purchasing managers' index and the ADP private payrolls report on Wednesday in the US, leading into non-farm payrolls on Friday.

Investors will be watching local building consents for August, and the ANZ Business Outlook survey for direction on New Zealand's economy.

On Wednesday morning, the kiwi rose to 56.32 euro cents from 56.02 cents on Tuesday after German and Spanish inflation came in below expectations.

It increased to 41.83 British pence from 41.58 pence and rose to 75.84 yen from 75.43 yen.

It was little changed at 90.75 Australian cents from A90.64c and advanced to 4.0355 Chinese yuan from 4.0129 yuan.