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

 


NZ dollar holds gains ahead of expected rate hike

NZ dollar holds gains ahead of expected hike in Reserve Bank interest rates

By Tina Morrison

March 13 (BusinessDesk) – The New Zealand dollar, which has advanced 3.4 percent so far this year, is unchanged ahead of the Reserve Bank meeting today where governor Graeme Wheeler is widely expected to increase interest rates by a quarter point.

The kiwi was unchanged at 84.67 US cents at 8am in Wellington, from 5pm yesterday and 81.91 cents at the start of the year. The trade-weighted index edged lower to 79.31 from 79.49 yesterday.

Governor Wheeler has signalled the official cash rate will have to rise from its record-low 2.5 percent to head off the threat of future inflation, and investors will today be looking for further detail on the extent and pace of any future hikes. Traders have priced in a 100 percent chance of a rate hike when the decision is released at 9am today, according to the Overnight Index Swap curve. Higher interest rates boost the appeal of local assets, increasing demand for the nation’s currency.

“Today the RBNZ is almost unanimously expected to raise the OCR from its historic low of 2.5 percent,” Kymberly Martin, markets strategist at Bank of New Zealand, said in a note. “Any deviation from this expectation (unlikely in our view) would prompt a large response in the currency. Still, even delivery on expectation may prompt the obligatory knee-jerk tick higher in the NZD/USD.”

BNZ’s Martin said she will be looking for potential upgrades to the central bank’s expectations for growth, inflation and the 90-day bank bill rate.

The New Zealand dollar slipped to 94.15 Australian cents at 8am in Wellington from 94.45 cents at 5pm yesterday ahead of the release of Australian employment data at 1:30pm New Zealand time.

Economists expect Australia to have added 15,000 jobs in February and for the unemployment rate to remain at 6 percent.

Chinese retail sales, industrial production and fixed asset investment reports, scheduled for release at 6:30pm New Zealand time, may also weigh on the Australian currency, Martin said.

The kiwi weakened to 60.89 euro cents from 61.11 cents yesterday, was little changed at 50.95 British pence from 50.93 pence and slipped to 86.92 yen from 87.21 yen.

New Zealand’s food price index is released at 10:45am while tonight traders will be eyeing US retail sales data for February.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news