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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news