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

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news