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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news