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

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news