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

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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