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.


© 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