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


NZ dollar heads for 0.7% weekly fall

NZ dollar heads for 0.7% weekly fall on prospect of slower rate hikes

By Paul McBeth

May. 23 (BusinessDesk) - The New Zealand dollar is heading for a 0.7 percent weekly decline as improving prospects for global growth buoyed the greenback, and left traders to mull the prospect of a slower cycle of local interest rate hikes.

The kiwi fell to 85.62 US cents at 5pm in Wellington from 86.21 cents last Friday in New York. It traded at 85.61 cents at 8am, down from 85.82 cents yesterday. The trade-weighted index was at 79.91 from 79.98 yesterday, and is heading for a 0.4 percent weekly decline.

A BusinessDesk survey of 11 traders and strategists on Monday predicted the local currency would trade between 85 US cents and 87.40 cents this week. Six predicted the kiwi would remain neutral this week, while two picked it to increase and three said it would decline.

Better than expected manufacturing indicators in the US and China helped buoy the greenback yesterday after minutes to the latest Federal Reserve policy meeting this week showed there was scope still scope for the US to run near-zero interest rates. Tepid inflation In New Zealand has caused investors to question whether the central bank will hike interest rates as aggressively as thought, and are looking to the next monetary policy statement in June for guidance. Traders are betting the Reserve Bank will lift the official cash rate 84 basis points over the coming 12 months, down from 90 points in early May before governor Graeme Wheeler threatened he may intervene in currency markets if the kiwi doesn't follow falling commodity prices.

"We've still got fears that the Reserve Bank will cut the OCR track in two weeks," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "That's putting downward pressure on the kiwi and could take a new lease of life next week."

An ANZ-Roy Morgan survey today showed New Zealand consumer confidence continued to come off pre-recession highs, while remaining at elevated levels, with rising interest rates starting to bite into people's optimism.

Traders will be watching the German IFO business survey and data on US new home sales in the Northern Hemisphere session.

The local currency fell to 87.12 yen at 5pm in Wellington from 87.26 yen yesterday, and gained to 92.65 Australian cents from 92.51 cents. It was little changed at 62.72 euro cents from 62.75 cents, and traded at 50.74 British pence from 50.80 pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news