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

 


NZ dollar trades in tight range ahead of CPI data

NZ dollar trades in tight range ahead of CPI data

Jan 18 (BusinessDesk) - The New Zealand dollar was confined in a narrow range ahead of the release of the December quarter consumer price index (CPI) this morning.

The kiwi was at 84.10 US cents at 8am, up from 83.93 US cents at 5pm on Thursday.

“It traded in a 40 point range at best overnight ,” Mike Jones, from the sales team at BNZ said.

There was potential for the CPI data to set the market alight, particularly if inflation was low, he said.

The market is expecting a 0.1 percent rise in the CPI, taking the annual rate to 1.2 percent.

The Reserve Bank of New Zealand (RBNZ) is also expecting a 0.1 percent rise in the quarter and inflation is expected to remain at the bottom of the Reserve Bank of New Zealand's 1 to 3 percent target band during the coming year, according to economists.

Imre Speizer, senior market strategist at Westpac, said a small negative number could have negative psychological connotations, which would undermine the local currency.

The kiwi rose on Wednesday after disappointing employment data undermined the Australian dollar, increasing the case for an interest rate cut in Australia.

In New Zealand, the central bank is expected to keep the official cash rate unchanged until the end of the year.

The kiwi is generally expected to rise against the Australian dollar in coming months. It was at 79.73 Australian cents at 8am, slightly down from the 79.86 cents at 5pm on Thursday.

The kiwi was at 75.59 yen at 8am from 74.11 yen at 5pm on Thursday. It was at 62.86 euro from 63.19 euro and at 52.57 British pence from 52.48 pence.

The trade-weighted index was at 75.50 from 75.40.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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