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

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news