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

 


NZ dollar trades near 88 US cts for 3rd session

NZ dollar trades near 88 US cts for 3rd session ahead of Yellen, RBA minutes

By Jonathan Underhill

July 15 (BusinessDesk) - The New Zealand dollar was little changed before testimony from Federal Reserve chair Janet Yellen that may provide clues to the timing of interest rate rises in the world's biggest economy and ahead of the release of minutes of the last Reserve Bank of Australia meeting.

The kiwi traded at 88.03 US cents at 8am in Wellington, edging back from 88.14 cents at 5pm local time yesterday. The trade-weighted index was at 81.80, down from 81.92 late yesterday, and has held in a trading range of about 30 points for more than a week.

Yellen has previously indicated the Fed isn't in any rush to start raising interest rates from near zero and traders say she may reiterate that view in appearances this week even amid signs of improvement in US employment. The Reserve Bank of Australia has kept its cash rate at 2.5 percent, saying it sees no need to begin tightening policy any time soon, in contrast to New Zealand's central bank, which is expected to hike the official cash rate to 3.5 percent this month as inflation accelerates.

"Investors seem to be bracing for the main events later on, in particular Fed Chair Yellen’s speaking engagements in front of US lawmakers, which kick off tonight," said Raiko Shareef, currency strategist at Bank of New Zealand. "We’re on the lookout for any acknowledgement of a faster-than-expected improvement in the labour market, but we’re not holding our breath."

In New Zealand, second-quarter inflation figures due on Wednesday are expected to show the consumer price index rose to 0.4 percent in the second quarter for an annual pace of 1.8 percent, according to a Reuters survey. That's closer to the mid-point of the 1 percent-to-3 percent range that the Reserve Bank targets and would keep intact expectations that governor Graeme Wheeler will raise the official cash rate to 3.5 percent this month.

The local currency traded at 64.60 euro cents, down from 64.78 cents late yesterday. It traded at 51.50 British pence, little changed from yesterday, and slipped to 93.63 Australian cents from 93.79 cents. It barely budged at 89.36 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news