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 central banks

NZ dollar little changed as investors await decisions from Fed, RBNZ

By Tina Morrison

Jan. 29 (BusinessDesk) – The New Zealand dollar was little changed as investors await tomorrow’s outcome of central bank meetings in the US and New Zealand.

The kiwi slipped to 82.59 US cents at 8am in Wellington, from 82.75 cents at 5pm yesterday. The trade-weighted index was little changed at 78.18 from 78.20 yesterday.

Investors are reluctant to take major bets on currencies as they await the results of central bank meetings in the US and New Zealand tomorrow morning. Analysts expect the Federal Reserve Open Market Committee will continue to pare back its US$75 billion a month asset purchase programme, while in New Zealand some are betting the Reserve Bank could raise interest rates although the majority expect a rise in March.

“We didn’t see much in the crosses overnight,” said Tim Kelleher, ASB Bank head of institutional FX sales in New Zealand. “There’s some pretty big events come Thursday with the FOMC and the Reserve Bank so I think we will be pretty quiet on the day.”

The New Zealand dollar is likely to find support at 82.25 US cents and sellers towards 83 cents, Kelleher said.

Investors are stepping back into equities and emerging markets whose recent sell-off drove money into safe-haven currencies. Traders will be eyeing the outcome of Turkey’s central bank meeting today after Governor Erdem Basci implied he would hike interest rates to rein in inflation, following an increase by the Indian central bank.

“It’s been extremely volatile the last two to three days so the market is probably going to take the opportunity to sit on its hands until they get some more clarification later in the week,” said ASB’s Kelleher.

In New Zealand today, Finance Minister Bill English will appear before a select committee about the country’s half-year fiscal results and the Reserve Bank publishes data on low-equity home lending for December.

In the US, President Obama delivers his State of the Union address.

The New Zealand dollar was little changed at 94.16 Australian cents from 94.06 yesterday following an upbeat Australian business confidence report yesterday.

The local currency was little changed at 49.84 British pence from 49.79 pence yesterday after a report showed the UK economy expanded 0.7 percent in the fourth quarter, as expected.

The kiwi was little changed at 60.48 euro cents and 84.99 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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