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

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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