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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news