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

 


DOLLAR OUTLOOK:Japanese and US policy the focus

DOLLAR OUTLOOK: Japanese and US policy the focus of NZ Dollar market this week

Jan. 21 (BusinessDesk) - The New Zealand dollar will struggle to exhibit a clear trend this week with Japanese monetary policy and US budget policy at the top of traders' minds.

The kiwi recently traded at 83.46 US cents from 83.64 cents at 5pm on Friday. It may trade in a range of 81.80 cents to 84.70 cents this week, according to a BusinessDesk survey of four traders and strategists.

"I'm seeing that the uptrend since June last year remains intact as long as 82.00 cents holds," Imre Speizer, senior markets strategist at Westpac, said.
"Momentum has slipped and the kiwi could test just under 83.00 cents," he said, saying he was neutral on direction this week.

Alex Sinton at ANZ is predicting an upward bias for the kiwi this week but says direction is a hard call.

"The Bank of Japan tomorrow is the fly in the ointment," he said.

The Bank of Japan is expected to keep to its plan of stimulating the Japanese economy, which has made the yen weak.

All 23 economists in a Bloomberg News survey expect the central bank to expand asset purchases at a two-day meeting that starts today.

"Most of what they unveil tomorrow will have been priced into the yen and if anything we might get some yen buying once the news is out with people taking profit on short-yen positions," Mr Speizer said.

"Kiwi-yen is really extremely over-bought technically and it's really screaming that it needs to correct at least a few yen," he said.

In the US, the Republican-controlled House of Representatives has signalled that it intends to support a three-month extension of the US debt ceiling.
Bancorp Treasury Services says that this would avert a government debt default in February or March.

The looming US debt ceiling fight was not yet upsetting markets, with US equities touching five-year peaks.

Mr Speizer said a vote on this temporary debt ceiling increase on Wednesday US time may prove to be the most important event for the new Zealand market this week.

"The extension would put off a fight between the Republicans and Obama over a long term ceiling increase until they have negotiated two other fiscal deadlines in the next few months."

With a weaker-than-expected December- uarter New Zealand consumers price index now behind the market, the focus is turning to Australian December-quarter inflation data on Wednesday.

The headline consumers price index is expected to be softer because of weak food prices, but the core rate will be little changed.

A rate cut is expected to be discussed at the next Reserve Bank of Australia board meeting in February and a low core CPI could be a tipping point.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news