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

 


NZ dollar at bottom of range as ECB forum awaited

NZ dollar at bottom of range as ECB forum awaited; US, UK holidays thin volumes

By Paul McBeth

May. 26 (BusinessDesk) - The New Zealand dollar held near the bottom of its recent band ahead of the European Central Bank forum which may give investors clues to how the monetary authority will stave off threats to the regional economy. Holidays in the US and UK are likely to keep trading volumes light, traders said.


The kiwi traded at,85.33 US cents 5pm in Wellington from 85.36 cents at 8am and 85.39 cents on Friday in New York. The trade-weighted index was 79.73 from 79.78 at the Friday close.


ECB president Mario Draghi opened the three-day conference near Lisbon, and traders are looking for any clues as to how the central bank will overcome low inflation and whether the bank will ease monetary policy further through a series of stimulus measures.,Memorial Day in the US and a bank holiday in the UK means trading desks in New York and London will be closed on Monday, reducing liquidity and opening up potential for a volatile session.


"The ECB speakers have started off fairly dovish" and "there's still more ECB rhetoric to come," said Alex Hill, head of trading at HiFX in Auckland. "The euro is under pressure, which is keeping the US dollar bid firmly and commodity currencies down."


HiFX's Hill said the lack of liquidity in the market means traders could push the kiwi around in the Northern Hemisphere session. The kiwi is trading about 20 basis points above a strong support level, he said.


A,BusinessDesk survey of 10 traders and strategists predicts the local currency may trade between 84.30 US cents and 86.50 cents this week. Seven predict the kiwi will fall this week, while three expect it to increase.


The board of Fonterra Cooperative Group is expected to cut its forecast payout to farmers after several months of declining dairy prices, something the Reserve Bank governor Graeme Wheeler has signalled should lead to a drop in the kiwi dollar.


The local currency traded at 86.98 yen at 5pm in Wellington from 87.06 yen on Friday in New York, and was little changed at 92.37 Australian cents from 92.44 cents. It traded at 62.66 euro cents from 62.63 cents last week, and,was at 50.69 British pence from 50.73 pence.


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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