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

 


NZ dollar falls as Fed minutes show some favour rate hikes

NZ dollar weakens after Fed minutes show some officials favour rate rises in 2014

By Tina Morrison

Feb. 20 (BusinessDesk) – The New Zealand dollar weakened after the Federal Reserve minutes of its January meeting showed some officials raised the possibility of rate rises “relatively soon”.

The kiwi slipped to 82.95 US cents at 8:10am in Wellington from 83.02 cents immediately before the 8am release of the minutes and 82.99 cents at 5pm yesterday. The trade-weighted index was unchanged from yesterday at 77.83.

The US dollar strengthened, pushing the kiwi lower, after the minutes which traders considered were positive on growth with a hawkish bias. The minutes showed policy makers disagreed on the likely timing of the Fed’s first interest rate increase, with a few officials raising the possibility it might be appropriate to increase the federal funds rate “relatively soon”.

“The market is taking it ever so slightly on the hawkish side of things so it is US dollar positive,” said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. “They are really focusing on a statement in the minutes that a few participants raised the possibility it might be appropriate to increase the Federal funds rate relatively soon.”

Still, Tuck said that shouldn’t come as a surprise as Dallas Fed president Richard Fisher and Philadelphia Fed president Charles Plosser, whose views have gained more prominence because they are voting members this year, have previously voiced concerns that the rate has been too low for a very long time.

“In the long term it doesn’t actually change much for the kiwi because people will look through it and realise it is not actually new information,” Tuck said.

In New Zealand today, reports are scheduled for release on fourth quarter producer prices at 10:45am, ANZ job advertisements for January at 10am, and the ANZ-Roy Morgan consumer confidence report for February at 1pm.

Finance Minister Bill English is scheduled to deliver a speech at midday on public administration where he is likely to try to talk down the prospect of spending government surpluses, Raiko Shareef, currency strategist at Bank of New Zealand, said in a note.

Traders will be eyeing China’s latest HSBC/Markit Flash PMI which is expected to show February manufacturing in Asia’s largest economy remained just below the 50 level which delineates contraction and expansion.

The New Zealand dollar weakened to 91.93 Australian cents at 8:10am in Wellington from 92.11 cents yesterday.

The local currency was little changed at 60.34 euro cents from 60.31 cents yesterday, slipped to 49.66 British pence from 49.75 pence and advanced to 84.93 yen from 84.79 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news