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

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news