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

 

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news