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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news