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

 


NZ dollar trades off lows on buying ahead of MPS

NZ dollar trades off lows on buying ahead of MPS

By Jonathan Underhill

Jun. 10 (BusinessDesk) - The New Zealand dollar recovered from intraday lows amid buying ahead of the monetary policy statement on Thursday, as traders speculate the central bank could be less dovish than the market is pricing.

The kiwi rose to 85 US cents from 84.88 cents at 8am to be lower than in late trading yesterday at around 85.13 cents. The trade weighted index traded at 79.28 from 79.16 at the start of the day.

The Reserve Bank is poised to raise the official cash rate to 3.25 percent on Thursday, although opinions differ whether governor Graeme Wheeler will either project a lower track for OCR increases or reiterate some 200 basis points of tightening by late 2015 or early 2016. An International Monetary Fund report on New Zealand today painted a relatively upbeat picture of an economy it sees growing 3.5 percent this year. Traders don't want to bet on a weaker track by shorting the kiwi dollar and bid the currency up when it has fallen recently.

"Whenever it sells off, like it did overnight, buyers will come back in," said Imre Speizer, senior market strategist at Westpac Banking Corp. "They don't want to go into the RBNZ short the kiwi."

Investors will be watching for signals on the pace of OCR increases in the MPS although Wheeler may not project the timing of hikes this year, Speizer said. Wheeler wants to avoid sending a message that there will be a pause in rate hikes this year, given rates are still accommodative.

The New Zealand dollar traded at 90.83 Australian cents from 91.02 cents the previous day.

The kiwi was little changed at 62.54 euro cents from 62.40 cents yesterday and edged lower to 50.54 British pence from 50.65 pence ahead of data on UK industrial production. The local currency slipped to 86.93 yen from 87.29 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Scoop Business: ComCom Charges Hawkins’ Finance Companies Over Debt Recovery

The Commerce Commission has filed criminal proceedings against two finance companies run by former 1980s high-flyer Allan Hawkins over their debt recovery practices. More>>

ALSO:

Science Media Centre: The Big Science Stories Of 2014

It was a dramatic year for science, one that witnessed a severe outbreak of Ebola in West Africa and an historic mission to land a space probe on a comet. On the home front... headlines with animal testing for 'legal highs', 1080 use to tackle increased pest numbers and court action over genetically modified organisms among the most-covered stories. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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