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

 


NZ dollar rises ahead of Thursday’s central bank statements

NZ dollar rises ahead of Thursday’s central bank statements

Jan. 30 (BusinessDesk) - The New Zealand dollar fell late in the day ahead of tomorrow's Reserve Bank of New Zealand (RBNZ) review of the official cash rate, current set at 2.5 percent.

The kiwi was at 83.16 US cents at 5pm, down from 83.61 US cents at 5pm on Tuesday.

The focus is on a statement by the US Federal Reserve's Open Market Committee (FOMC) at 8.15am New Zealand time on Thursday, and the cash rate review by the RBNZ at 9am.

"The RBNZ will need to be careful that it does not again pressure the New Zealand dollar higher with inferences of eventual higher interest rates, as it did in December," Derek Rankin at Rankin Treasury said.

The RBNZ is widely expected to hold the cash rate at 2.5 percent.

Imre Speizer, senior markets strategist at Westpac, said the RBNZ's comments may be more dovish than the last press release in December, which could cause a little kiwi selling.

The FOMC may reaffirm that stimulatory programmes will be kept in place after mumbles previously of a possible exit.

"I'd expect Bernanke (Fed chairman Ben Bernanke) to say parts of the economy have improved but parts are still a bit questionable. That might cause US interest rates to dip. That's a potential up for the kiwi," Speizer said.

Friday's US payrolls data is also a big event for the market but evidence ahead of it has been conflicting.

"It's a crap shoot more than usual," Speizer said.

Darren Gibbs at Deutsche Bank said the building sector in New Zealand will need to drive the economy in the next two years given pressures on the export sector and fiscal retrenchment.

According to Statistics New Zealand just 39 apartments, all retirement units, were consented in November, the lowest reading since April 2011.

"As a result it was not surprising to see a rebound in this category to 232 apartments in December," Gibbs said in comment on data released today.

"This was single-handedly responsible for a 9.4 percent month-on-month rise in the total number of new dwelling consents issued in December," he said.

The kiwi was unchanged at 80.16 Australian cents from the same level at 5pm on Tuesday and was up against the Japanese currency at 76.27 yen from 76.08.

It was at 62.22 euro cents from 62.16, and at 53.26 British pence from 53.27.
The trade-weighted index was at 75.37 from 75.62.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news