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

 


NZ dollar little changed before RBNZ interest rate decision

NZ dollar little changed before RBNZ interest rate decision as traders mull outlook

By Tina Morrison

April 24 (BusinessDesk) – The New Zealand dollar was little changed ahead of the Reserve Bank decision on interest rates today as traders await clues to the pace of the tightening cycle.

The kiwi was steady at 85.92 US cents at 8am in Wellington from 85.94 cents at 5pm yesterday. The trade-weighted index was almost unchanged at 79.96 from 79.99 yesterday.

New Zealand’s central bank is expected to hike rates for the second month in a row, taking the benchmark to 3 percent. Last month the RBNZ became the first major central bank to raise interest rates since the global financial crisis, and signalled more hikes were in the pipeline as it attempts to head off inflation. Still, traders are mulling whether the bank may slow the pace of future hikes after a decline in dairy prices and lower than expected inflation.

“Normally an interest rate hike by a central bank is very positive for the currency especially when they are the only ones tightening, but in the case of the RBNZ they could say future rate hikes will be conditional on data, which would suggest a pause in June,” Kathy Lien, managing director of foreign exchange strategy at BK Asset Management in New York, said in a note.

Lien said traders will be focused on any comments on the outlook for future hikes as they mull so-called long bets on the currency, which anticipates a currency will rise in value.

“If the RBNZ were to adopt a less hawkish posture, it would trigger further unwinding of long NZD/USD positions that could take the currency pair to 84 cents even if it remains one of the world’s most hawkish central banks,” Lien said. “If the RBNZ tightens and remains committed to their hawkish monetary policy plans, NZD will soar as traders who sold above 87 cents reload their long positions.”

The central bank will release its decision in a one-page statement at 9am local time.

The New Zealand dollar slipped to 92.51 Australian cents from 92.59 cents yesterday, edged lower to 62.18 euro cents from 62.22 cents, advanced to 51.20 British pence from 51.07 pence and dropped to 88.03 yen from 88.15 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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