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

 


NZ dollar little changed as investors await Fed meeting

NZ dollar little changed as investors await Fed meeting

By Paul McBeth

Dec. 18 (BusinessDesk) - The New Zealand dollar was little changed in local trading as investors await the outcome of the Federal Reserve’s latest policy meeting, amid speculation the US central bank will announce a winding back of its massive money printing programme.

The kiwi traded at 82.52 US cents at 5pm in Wellington from 82.61 cents at 8am, down from 82.80 cents yesterday. The trade-weighted index declined to 77.79 from 77.99 yesterday.

About a third of the market expects the Federal Open Market Committee will announce a small cut in the US$85 billion monthly bond buying scheme at the end of their meeting on Tuesday in Washington. Improving economic data in the US has built up expectations for a scaling back of the quantitative easing, though traders have previously been disappointed when the Fed didn’t go ahead with the cuts in September.

“Clearly, it’s very finely balanced on which way they’re going to go,” said Stuart Ive, senior client adviser at OM Financial in Wellington. “If the Fed does nothing we could see the kiwi spike higher on the back of that.”

Once the Fed meeting is over, investors will be looking to New Zealand’s third-quarter gross domestic product figures, which are expected to show quarterly growth of 1.1 percent.

OM’s Ive said if the Fed doesn’t unwind its bond buying programme, he doesn’t expect the kiwi to fall too far because of the momentum in the local economy.

An ANZ Bank survey today showed business confidence at a 15-year high, and more than half of the firms surveyed see their own activity picking up in the next year.

The local currency was little changed at 92.62 Australian cents from 92.60 cents yesterday after Reserve Bank of Australia governor Glenn Stevens told politicians the monetary authority is still open to rate cuts if they’re needed, but would prefer a weaker currency to balance out a slowing economy.

The kiwi fell to 84.98 yen from 85.24 yen yesterday, ahead of the Bank of Japan’s policy review. The local currency dropped to 59.90 euro cents from 60.14 cents yesterday, and slipped to 50.65 British pence from 50.78 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news