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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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