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

 


NZ dollar heads for 1.4% weekly gain; RBNZ won't cut rates

NZ dollar heads for 1.4% weekly gain after RBNZ quashes rate cut talk

By Paul McBeth

Dec. 7 (BusinessDesk) - The New Zealand dollar is headed for a 1.4 percent gain this week after Reserve Bank governor Graeme Wheeler quashed expectations for a rate cut, singling out the country's inflationary pressures as his number one bugbear.

The kiwi traded at 83.18 US cents at 5pm in Wellington from 83.12 cents at 8am and 82.87 cents yesterday. The trade-weighted index climbed to 74.42 from 74.03 yesterday, and is heading for a 1.1 percent weekly gain.

Traders have wound back their expectations for a rate cut after RBNZ's Wheeler kept the official cash rate at 2.5 percent and told reporters it will stay there until the end of 2013 as he keeps tabs on an Auckland property market that’s heating up and building inflation pressures in the Canterbury rebuild.

US non-farm payrolls aren't expected to grab too much attention when they're released today in Washington DC, due to the impact of Hurricane Sandy, though investors will continue to keep tabs on the ability of US legislators to make any progress on stalled talks to prevent US$607 billion of automatic tax hikes and spending cuts from kicking in next month.

"The part of the economy most likely to stimulate with cuts is the part that least needs it," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. The trans-Tasman currencies "are going reasonably well into year-end and people aren't too worried about the fiscal cliff at this stage."

Investors have shifted their focus to next week's Federal Open Market Committee meeting, where the US central bank may replace Operation Twist, a programme of selling shorter-dated debt and buying bonds with longer maturities.

Chinese industrial production and retail sales figure will also be watched this weekend as investors gauge the health of the world's second-biggest economy.

The kiwi jumped to 64.15 euro cents from 63.50 cents yesterday, and advanced to 51.80 British pence from 51.52 pence.

New Zealand's currency rose to 79.36 Australian cents from 79.19 cents yesterday, and gained to 68.61 yen from 68.38 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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