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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news