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

 


NZ dollar slips as investors await Bernanke’s take on QE

NZ dollar slips as investors await Bernanke’s take on QE

By Paul McBeth

May 22 (BusinessDesk) - The New Zealand dollar edged lower in the local session as investors hold off from making any decisions ahead of Federal Reserve chairman Ben Bernanke’s Congressional testimony, where he’s expected to give his view on whether the US central bank will start unwinding its quantitative easing programme.

The kiwi slipped to 81.47 US cents at 5pm in Wellington from 81.60 cents at 8am, down from 81.82 cents yesterday. The trade-weighted index fell to 76.82 from 77.10 yesterday.

Bernanke will testify in front of a House of Representatives committee on Wednesday in Washington, and investors will be looking for his view on whether the Fed will start unwinding its $85 billion a month asset purchase programme. Traders have been growing increasingly upbeat about the prospects of the Fed tapering off QE this year as the world’s biggest economy shows growing signs of life.

“Regardless of what Bernanke says, whether he tries to jawbone the market that’s he’s not going to remove the stimulus, the market has already priced in a better outlook for the US economy,” said Dan Bell, currency strategist at HiFX in Auckland. “It’s not surprising to see the New Zealand dollar come off those lows on Friday and consolidate for the time being, but overall, it does look like the kiwi/US does go lower.”

Traders will also be keeping tabs on tomorrow’s release of the HSBC flash purchasing managers’ index, an early indicator of China’s manufacturing, to get a steer on how the world’s second biggest economy is faring.

The kiwi was little changed at 83.29 Australian cents from 83.40 cents yesterday after a Westpac Banking Corp-Melbourne Institute survey showed consumer confidence plunged in Australia in May in its biggest decline in 17 months.

The local currency dropped to 83.56 yen from 83.82 yen yesterday after the Bank of Japan affirmed its plan to double its monetary base in a bid to stoke inflation to an annual 2 percent pace within two years.

The kiwi fell to 63.06 euro cents from 63.46 cents yesterday, and increased to 53.78 British pence from 53.66 pence.


(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