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

 

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news