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

 


NZ dollar holds gains after Chinese CPI as MPS looms

NZ dollar holds gains after Chinese CPI as traders look ahead to MPS

Feb. 14 (BusinessDesk) – The New Zealand dollar held its gains after Chinese inflation data came in near expectations and traders warmed to the kiwi’s fundamentals ahead of what’s expected to be an interest rate hike by the Reserve Bank next month.

The kiwi traded at 83.36 US cents, down from 83.52 cents at 8am in Wellington and up from 83.11 cents yesterday. The trade-weighted index was unchanged from yesterday at 78.28.

Consumer prices in China rose 2.5 percent in January from a year earlier, just above the 2.4 percent pace forecast in a Bloomberg survey but not enough to prompt economists to revise their take on the biggest market for New Zealand and Australia. At home, the Reserve Bank releases its monetary policy statement on March 13 and is expected to hike the official cash rate by a quarter point to 2.75 percent

“The kiwi has got a modest upward bias,” said Imre Speizer, senior market strategist at Westpac Banking Corp. “It’s not a screaming buy but clearly there is a good, positive backdrop in New Zealand.”

He said the kiwi “could have a go at punching above 84 US cents in the next week or so and if it does, the currency could reach 86 cents around the time of the MPS next month.

“Any moves until then will be from offshore,” he said, adding that a rate hike by the Reserve Bank was “largely priced in.”

The New Zealand dollar traded at 92.69 Australian cents, down from 92.89 cents yesterday. The kiwi advanced to 50.05 British pence from 49.98 pence.

The kiwi was little changed at 60.94 euro cents from 61.01 cents yesterday and was little changed at 84.82 yen.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news