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Kiwi on the rise

The kiwi dollar crept up all week from 5U50.5120 to 5U50.5220 before profittakers entered, settling the unit at $U50.5190. Futures reflected the movement trading from 1.9740 to 1.9370 on moderate volume, said Jenny Chin, of Marshall Futures.

Offshore interest and and N.Z. Yankee bond issue had been the main factors behind the upward move. A correction from these higher levels was expected but should run into good buying support in the low SUSO.SIOO area.

Continued offshore interest could keep the currency firm short term, said Miss Chin.

The news of the SIOOM Yankee bond draw-down on Thursday was the catalyst to push the kiwi dollar through 5U50.5200, said Mr Geoff McDonnell, manager of Mair Astley Futures. The high interest rates in New Zealand were maintaining a wide interest rate differential between New Zealand and its trading partners — 9 per cent for five-year Government bonds.

This made it more attractive to place funds in N.Z. and this was putting purchasing pressure on the kiwi dollar, pushing it higher. “In the meantime, we see sentiment favouring a firming New Zealand dollar,” Mr McDonnell said.

Government stock

Government stock climbed from a low of 8256 on Monday to a level of 8320 on Friday on heavy trading, Miss Chin said.

The buying strength was not as aggressive at the higher levels as many tried to justify these levels.

Offshore interest had been evident but it would take continued buying to keep the market at these levels.

Technicals started the buying run followed by stoplosses and sentiment. There were about 2900 contracts traded. Bank bills fluctuated this week between 7820 and 7700. Wool The wool futures market was again reasonably active with over 540 lots traded this week. Futures prices earlier in the week were on their highs but as the kiwi dollar strengthened to over $U50.5200, and cheaper prices for crossbred fleece at auction were anticipated the contract was sold sharply down on Wednesday and Thursday, said Miss Chin. The physical market bottomed out on Friday at approximately 578 c a kilogram for 35F2D and as stockholders and buyers of wool for commitments in January, 1987, moved into the market prices firmed up to the 582/ 584 level. BABs In this contract, the index is parallel to the call rate, said Mr McDonnell. “We can see pressure coming off the call rate on Monday once the

December stock tender is settled. This may herald a levelling out of term rates.” JUS CONTRACTS Mth Open H/L Last Vol Jan 1.9380 9490/380 9430 95 Contracts traded: 95 Open positions at Dec 18: Jan 529, Feb 10, Mar 15, total 554 (up 72). COMMERCIAL BILLS Mth Open H/L Last Vol Contracts traded: Nil Open positions at Dec 18: Jan 6, Feb 5, Mar 371, June 123, Sep 43, Dec 40, Mar 39, Jun 10, total 637 (down 7). GOVERNMENT STOCK Mth Open H/L Last Vol Mar 8311 8336/8308 329 544 Contracts traded: 544 Open positions at Dec 18: Jan 8, Mar 2728, total 2736 (up 120). WOOL FUTURES

Open positions at Dec 18: Dec 27, Jan 125, Mar 408, May 494, Aug 220, Oct 189, Dec 140, Jan 209, Mar 201, May 94, total 2107 (down 3). WHEAT FUTURES Mth Open H/L Last Vol Contracts traded: Nil. Open positions at Dec 18: Feb 17, Mar 25, May 18, total 60 (same). 90-DAY BANK BILLS Mth Open H/L Last Vol Jan 7800 800/770 778 102 Feb 7950 950/925 925 6 Mar 7985 005/7985 000 17 Jun 8150 150/150 150 5 Contracts traded: 130. Open positions at Dec 18: Jan 807, Feb 32, Mar 107, Jun 20, Sep 16, Dec 21, Mar 21, Jun 20, Sep 20, Dec 20, total 1084 (up 131).

Mth Open H/L Last Vol Jan 583 588/583 588 30 Mar 580 589/576 589 50 May 592 600/592 600 15 Aug 605 605/605 605 2 Oct 607 615/607 615 10 Dec 615 615/615 615 3 Jan 605 605/605 605 2 Contracts traded: 112

N.Z. FUTURES MARKET WEEK ENDED December 19. Trading Traded prices Total Open months This week To date this cont’s SUS High Low Last High Low week Jan '87 1.9740 1.9370 1.9430 2.1451 1.9000 333 529 Feb ’87 — — — 2.0000 1.9750 — 10 Mar ’87 Totals PCP 2.0120 2.0120 2.0120 2.08001.9930 2 335 15 554 Jan ’87 — — — 8250 8100 — 6 Feb ’87 — — — 8225 8225 — 5 Mar ’87 7990 7750 7990 8500 7750 31 371 Jun '87 8100 8100 8100 8520 7800 1 123 Sep ’87 8100 8100 8100 8500 7800 4 43 Dec '87 8150 8150 8150 8565 7800 5 40 Mar ’88 8175 8175 8175 8500 7800 7 39 Jun ’88 — — Totals GOVERNMENT STOCK — 8450 8410 48 10 637 Jan ’87 8310 8235 8305 8435 8245 25 8 Feb ’87 — — — 8280 8207 — — Mar ’87 8336 8256 8329 8455 8249 3835 2728 Jun ’87 — — — 8580 8400 — — Sep ’87 Totals WOOL — — — 8436 8400 3860 2736 Dec ’86 595 585 585 595 475 16 27 Jan ’87 591 583 588 599 474 46 125 Mar ’87 604 576 589 605 480 184 408 May '87 614 590 600 614 486 113 494 Aug ’87 616 603 605 629 532 48 220 Oct ’87 620 605 615 625 530 37 189 Dec ’87 620 611 615 626 541 21 140 Jan ’88 625 605 605 625 541 60 209 Mar ’88 625 615 615 625 551 26 201 May '88 Totals 627 618 620 530 575 18 569 94 2107 Tenderable stock: Christchurch, Dec. WHEAT 64 19 bales. 35F2D quotes — 580 in' Feb ’87 2140 2140 2140 2290 2060 4 17 Mar ’87 2190 2165 2190 2330 2050 4 25 May ’87 — — — 2350 2060 — 18 Jul ’87 _ _ _ 2150 Totals 90-DAY BANK ACCEPTED BILLS 2150 8 60 Jan ’87 7820 7700 7780 8070 7700 907 807 Feb ’87 7950 7850 7925 8030 7840 58 32 Mar ’87 8010 7900 8000 8120 7900 83 107 Jun ’87 8160 8100 8150 8160 8100 30 20 Sep ’87 8150 8100 8100 8150 8100 16 16 Dec ’87 8160 8150 8160 8160 8000 16 21 Mar ’88 8185 8150 8185 8185 8000 16 21 Jun ’88 8180 8150 8180 8180 8100 18 20 Sep ’88 8190 8150 8185 1980 8100 18 20 Dec ’88 Totals 8200 8150 8195 8200 8100 18 1180 20 1084

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19861220.2.112.19

Bibliographic details

Press, 20 December 1986, Page 31

Word Count
1,045

Kiwi on the rise Press, 20 December 1986, Page 31

Kiwi on the rise Press, 20 December 1986, Page 31