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

 


NZ dollar heads for 0.8% weekly fall before RBNZ rate review

NZ dollar heads for 0.8% weekly fall as RBNZ rate review looms

By Paul McBeth

April 17 (BusinessDesk) - The New Zealand dollar is heading for a 0.8 percent fall in a shortened week ahead of the Reserve Bank’s rate review next Thursday.

The kiwi dropped to 86.16 US cents at 5pm in Wellington from 86.86 cents on Friday in New York, and from 86.27 cents at 8am and 85.87 cents yesterday. The trade-weighted index traded at 79.97 from 79.75 yesterday, and is heading for a 0.4 percent weekly decline from 80.26.

A BusinessDesk survey of 10 traders and strategists on Monday predicted the kiwi would trade between 85.30 US cents and 87.80 cents in the short week. Four predicted the kiwi would fall this week, while one expected it to gain and five saw it largely unchanged.

The local currency has been under pressure this week amid falling global dairy prices and general risk aversion among investors. Slower-than-expected inflation in the first three months of the year raised questions over the track of future rate hikes, though traders are still pricing in a 97 percent chance of a quarter-point increase to the official cash rate when the Reserve Bank reviews it next Thursday.

“It’s the surprise from stuff not priced in, by either not hiking or hiking but making people think they’re not going to hike by as much in the future,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland, referring to the OCR review. He gives a 75 percent chance of the kiwi staying largely unchanged and a 25 percent chance of a decline after the review.

Speizer said the kiwi may fall over the next week or two to between 84 US cents and 85 cents, but maintains his view that it will test a new high by the middle of the year on New Zealand’s growth prospects and higher interest rate path.

New Zealand consumer confidence rose this month with households more upbeat about their financial position, according to an ANZ-Roy Morgan survey.

The New Zealand dollar advanced to 92.07 Australian cents from 91.62 cents yesterday, and gained to 88.97 yen from 87.73 yen. It was little changed at 62.22 euro cents from 62.14 cents, and slipped to 51.20 British pence from 51.34 pence yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news