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

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news