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

 


NZ dollar holds near 88 US cts ahead of Yellen testimony

NZ dollar holds near 88 US cts ahead of Yellen testimony

By Jonathan Underhill

Jul. 15 (BusinessDesk) - The New Zealand dollar held near 88 US cents for the fourth day in a row as traders await testimony from Federal Reserve chair Janet Yellen, due overnight, in which she may acknowledge an improving labour market, one of the prerequisites for raising interest rates.

The kiwi traded at 88.07 US cents at 5pm in Wellington, from 88.03 cents at the start of the day and from 88.14 cents late yesterday. The trade-weighted index was at 81.86 from 81.92 yesterday.

Yellen has previously indicated the Fed isn't in any rush to start raising interest rates from near zero but the US jobs market is on the mend, with payrolls rising by a higher-than-expected 288,000 workers in June, while the unemployment rate fell to 6.1 percent, the lowest in almost six years and a level the Fed didn't expect to see before year-end.

Her testimony will be delivered in the early hours of Wednesday morning New Zealand time, coming ahead of local consumer price index for second-quarter, which is widely expected to show inflation is accelerating.

Yellen "might be less dovish, which would push up the US dollar and weaken the kiwi," said Imre Speizer, senior market strategist at Westpac Banking Corp. "The employment numbers have been better."

Fed watchers will be listening for a "slight change of tone". Yellen is likely to be cautious, saying things are on the mend but the Fed has to keep policy accommodative, Speizer said.

There was little reaction in the kiwi dollar against the Australian dollar after the Reserve Bank of Australia released minutes of its last policy meeting, which showed that central bank determined to keep interest rates unchanged for now. The kiwi traded at 93.73 Australian cents from 93.63 cents at the start of the day and from 93.79 cents yesterday.

New Zealand second-quarter inflation figures due tomorrow 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 kiwi traded at 64.64 euro cents from 64.78 cents late yesterday and was little changed at 51.54 British pence. It traded at 89.45 yen from 89.38 yen yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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