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

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news