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

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news