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

 


NZ dollar little changed; Bernanke says tapering not preset

NZ dollar little changed after Bernanke says tapering not ‘preset’

By Paul McBeth

July 18 (BusinessDesk) - The New Zealand dollar was little changed in the local trading session after US Federal Reserve chairman Ben Bernanke said any wind-down in the central bank’s money printing programme isn’t a done deal, and will rely on economic data.

The kiwi slipped to 78.61 US cents at 5pm in Wellington from 78.95 cents at 8am, and little changed from 78.70 cents yesterday. The trade-weighted index edged up to 74.65 from 74.50.

Bernanke, in the first day of a two-day testimony to the House of Representatives in Washington, said the pace of the US$85 billion a month in asset purchases is not on a “preset course” but is dependent on the strength of economic data. Traders have been second-guessing whether the Fed will start unwinding the bond buying programme this year as the world’s biggest economy splutters back into life.

New Zealand consumer confidence slipped this month to 119.8 from a three-year high of 123.9 in June in an ANZ-Roy Morgan survey due to rising petrol prices and the threat of rising mortgage rates. The weaker kiwi has prompted traders to price in 45 basis points of increases to the official cash rate as they bet the Reserve Bank might act earlier than indicated. The central bank is expected to keep the key rate at 2.5 percent when it reviews monetary policy next week.

“The Reserve Bank might want to talk interest rates down a bit,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. He predicts the local currency will push towards 80.82 US cents, and tough talking from the central bank could turn that around, he said.

The kiwi rose to 85.69 Australian cents from 85.29 cents yesterday after a National Australian Bank survey showed more Australian firms were pessimistic than optimistic.

The local currency gained to 78.69 yen from 78.21 yen yesterday and rose to 60.01 euro cents from 59.88 cents. It fell to 51.77 British pence at 5pm in Wellington from 52.07 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news