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

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news