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

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news