FUTURES $NZ drops 4 cents

Press, 30 May 1985, Page 20

FUTURES $NZ drops 4 cents

The mandatory close-out on the ?US contract for May of 2.2258 c meant that it cost NZ4c more for each United States dollar than it did two months ago, said the futures manager of Mair Futures, Mr Geoff McDonnell. The New Zealand dollar would also be severely tested during the winter months if interest rates ease and because of other factors, such as the shutdown of the Marsden Point oil refinery for its inspection.

There was a lack of volatility on the SUS contract market, which was shown by the movement of only two to three points on the foreign exchange spot rate market during the day. A survey of foreign exchange dealers in the afternoon suggested that they were pointing to a resistance level of 45.00 c for the New Zealand dollar, down 20 or 30 points on the

previous resistance level. The prime commercial paper market had its busiest day’s trading since listing, with 62 trades going through. Most interest was in the September month, with a prediction of an easing of interest rates after comments by the Minister of Finance, Mr Douglas, in the last 48 hours on matters like the deficit and next month's Budget. The wool futures market was again quiet and lacked a catalyst to sway trading in either direction, Mr

McDonnell said. I COMMERCIAL BILLS 85 Open H/L Last Vol July 7545 7550/545 7550 10 Aug. 7510 7517/510 7517 33 Sep. 7510 7520/510 7520 33 Dec. 7515 7915/900 7900 5 Contracts traded: 62. sus CONTRACT 85 Open H/L Last Vol May 2.2240 .2270/215 .2270 14 June 2.2575 .2650/575 .2610 40 July 2.3000 .3020/950 .2950 9 Contracts traded: 63.