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


NZ dollar holds above 88 US cents, may test record this week

NZ dollar holds above 88 US cents, may test record high this week

By Jonathan Underhill

July 14 (BusinessDesk) - The New Zealand dollar held above 88 US cents and may test its post-float high this week as traders prepare for testimony from US Federal Reserve chair Janet Yellen and local data that's expected to confirm inflation is accelerating.

The kiwi traded at 88.03 USA cents at 8am in Wellington, little changed from the New York and Wellington closes on Friday last week. The trade-weighted index was at 81.90 from 81.89.

Second-quarter inflation figures due on Wednesday are expected to show the consumer price index sped to 0.4 percent last quarter for an annual pace of 1.8 percent, according to a Reuters survey. That would be a tad faster than the Reserve Bank forecast last month and keep intact expectations that governor Graeme Wheeler will raise interest rates again as soon as this month, lifting the official cash rate to 3.5 percent.

Yellen is scheduled to deliver her semi-annual policy testimony to the Senate Banking Committee tomorrow and address the House Financial Services Committee the following day, after minutes of the June Fed meeting showed that policy makers are planning to end their monthly bond-buying programme after the October gathering.

"The price action tells you there's fairly decent demand" for the kiwi, said Sam Tuck, senior FX strategist at ANZ New Zealand. "It has been unable to break through the psychological level of 88.42, the post-float high. It's a sign we really need to make new ground. The catalyst may come from Q2 CPI or Yellen."

ANZ New Zealand's CPI forecasts match the market consensus, "which would be consistent with the RBNZ," Tuck said.

He sees the kiwi trading in a range of 87.90 US cents to 88.35 cents in the next 24 hours and a range of 87.60 cents to 89 cents in the week.

"It has been a gradual grind higher since the June MPS" for the kiwi, he said. "It is stubbornly bid."

The local currency traded at 64.73 euro cents, little changed from the New York close, and little changed at 51.41 British pence. The New Zealand dollar was almost unchanged at 93.85 Australian cents and traded at 89.24 yen.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news