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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news