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

 


NZ dollar gains ahead of RBNZ statement

NZ dollar gains ahead of RBNZ statement seen as kicking off tightening cycle

By Paul McBeth

March 11 (BusinessDesk) - The New Zealand dollar gained in local trading on expectations the Reserve Bank will hike the official cash rate at this Thursday’s policy review, kicking off a prolonged tightening cycle.

The kiwi rose to 84.81 US cents at 5pm in Wellington from 84.64 cents at 8am and 84.61 cents yesterday. The trade-weighted index advanced to 79.50 from 79.19 yesterday.

Traders have lifted bets on a rate hike on Thursday, pricing in a 101 percent chance central bank governor Graeme Wheeler will raise the official cash rate, according to the Overnight Index Swap curve. Yesterday traders are pricing in a 98 percent chance. Wheeler has signalled interest rates will start rising this year as he attempts to head of the threat of future inflation as the local economy gathers momentum.

“The kiwi has certainly outperformed the Aussie, suggesting that it’s kiwi-specific,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “It’s looking slightly bullish on the day, and as long as we don’t get any shenanigans from geopolitics, there’s every chance it could take a stab at 85.25 US cents.”

New Zealand house sales fell 7.6 percent in February from a month earlier, indicating the Reserve Bank’s curbs on low-equity home lending were having an effect on the lower end of the market, while government figures showed retail spending on credit and debit cards gained last month, led by increased spending on hospitality.

The kiwi rose to 93.92 Australian cents at 5pm in Wellington from 93.53 cents yesterday after the National Australia Bank business survey showed firms were gloomier in February after an optimistic January. The weak survey followed a drop in iron ore prices yesterday amid deteriorating Chinese trade figures.

The local currency gained to 87.61 yen from 87.22 yen yesterday after the Bank of Japan maintained its near-zero interest rate policy and affirmed an annual expansion of the monetary base by 60 to 70 trillion yen. Japan’s central bank said the economy is expected to continue with a moderate recovery, and anticipates annual inflation of 1.25 percent to persist for some time.

The kiwi gained to 61.15 euro cents at 5pm in Wellington from 60.91 cents yesterday, and reached a two-month high 50.98 British pence, trading at 50.95 pence at 5pm from 50.56 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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