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

 


NZ dollar falls before Fed, RBNZ as RBA sees weaker currency

NZ dollar falls before Fed, RBNZ as RBA sees weaker currency

Oct. 29 (BusinessDesk) – The New Zealand dollar fell, closing in on a key support level, ahead of the Federal Reserve’s two-day policy meeting and after the Reserve Bank of Australia said its currency may be “materially lower” in future.

The kiwi fell to 82.67 US cents at 5pm from 83.03 cents at the start of the day and from 83.07 cents the previous day. The trade-weighted index fell to 76.22 from 76.37.

The Federal Open Market Committee is expected to maintain its bond buying stimulus programme when it surfaces after a two-day meeting on Wednesday in the US while economic data delayed by the budget shutdown may provide evidence the world’s biggest economy is struggling.

New Zealand’s central bank is expected to keep its official cash rate unchanged at 2.5 percent on Thursday, while in Australia, the media picked up on comments from governor Glenn Stevens today that at some point in the future “the Australian dollar will be materially lower than it is today.”

“The kiwi may find some support in the next couple of days,” said Sue Trinh, senior currency strategist at RBC Capital Markets in Hong Kong. “The risks to the US dollar are skewed to the downside.”

The kiwi may trade in a range of 82.50 US cents to 83 cents in the next 24 hours, she said. If US data prints stronger than expected, traders are likely to dismiss it as relating to “the pre-shutdown economy,” she said.

Media reports of the speech by the RBA’s Stevens had put a “negative spin” on his comments in what was actually a balanced presentation, Trinh said.

The kiwi dollar rose to 86.91 Australian cents from 86.64 cents at the start of the day and up from 86.44 cents in Asia yesterday. The local currency fell to 80.62 yen from 80.99 yen at the start of the day and slipped to 60.02 euro cents from 60.15 cents. It was little changed at 51.37 British pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news