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

 


NZD little changed this week as Fed spurs greenback demand

NZ dollar little changed this week as Fed spurs greenback demand

By Paul McBeth

March 21 (BusinessDesk) - The New Zealand dollar is almost unchanged this week after the Federal Reserve’s growing optimism on the strength of the US economy spurred demand for the greenback.

The kiwi traded at 85.32 US cents at 5pm in Wellington from 85.34 cents at the close of trading in New York last week. It traded at 85.31 cents at 8am and 85.27 cents yesterday. The trade-weighted index was little changed at 79.96 from 79.90 yesterday and 79.81 at last week’s close.

A BusinessDesk survey of nine traders and strategists on Monday predicted the local currency would trade between 83.40 US cents and 86.50 cents this week. Six predicted the kiwi would decline this week, one expected an increase and two saw it largely unchanged.

The Fed yesterday signalled US interest rates may rise faster than traders were anticipating as the world’s largest economy improves. In her first meeting as chair Janet Yellen told a press briefing rates might rise about six months after the asset purchase programme ended.

While the Fed’s moves were positive for the greenback, New Zealand’s currency held up with local data affirming the strength of the economy, which grew 0.9 percent in the three months ended Dec. 31. Government figures today showed annual inbound net migration at a decade high, while ANZ data showed upbeat consumer confidence.

“There’s nothing to suggest the New Zealand side of the story is going to look weak,” said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. “That should keep the kiwi in demand on any dips.”

Traders will be watching early manufacturing indicators next week in China, Europe and the US for leads on how the global economy is tracking.

The local currency traded at 87.31 yen at 5pm in Wellington from 87.26 yen yesterday and fell to 94.17 Australian cents from 94.54 cents. It gained to 61.90 euro cents from 61.64 cents yesterday, and increased to 51.67 British pence from 51.54 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news