Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar ends November where it started: MPS next week

NZ dollar ends November where it started ahead of next week's RBNZ review

By Paul McBeth

Nov. 30 (BusinessDesk) - The New Zealand dollar is set to end the month virtually unchanged against the greenback as US politicians try to navigate away from the fiscal cliff and trans-Tasman central banks prepare to review monetary policy next week.

The kiwi traded at 82.23 US cents at 5pm in Wellington from 82.24 cents at 8am, and down from 82.41 cents yesterday. The trade-weighted index fell to 73.58 from 73.74 yesterday, and is poised for 0.5 percent monthly gain.

Institutional investors will likely keep their asset allocations unchanged after a flat month in global equity markets, meaning the kiwi dollar isn't likely to get pushed around in the month-end tinkering by large finance houses. That comes as US legislators from opposing political parties struggle to meet any common ground in trying to avert he automatic US$607 billion in tax increases and spending cuts which kick in on Jan. 1.

"Equity markets are pretty flat for the month, so there's not much portfolio adjustment going on," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. "The kiwi wants to drift lower."

The kiwi dollar crept up to 78.86 Australian cents at 5pm in Wellington from 78.75 cents as central banks on both sides of the Tasman prepare to review their respective monetary policies.

Traders are pricing a 77 percent chance the 3.25 percent target cash rate will be trimmed, according to the Overnight Index Swap curve. New Zealand’s central bank, which also meets next week, is being given a 14 percent chance of a cut to its 2.5 percent official cash rate, meaning Australia’s yield advantage will probably narrow.

Kelleher said "markets are taking a slightly dovish tone going into the MPS" in New Zealand, after governor Graeme Wheeler previously indicated he would talk about the currency at the meeting.

New Zealand's currency increased to 67.81 yen from 67.65 yen yesterday, and declined to 51.25 British pence from 51.45 pence. It fell to 63.27 euro cents from 63.63 cents yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news