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

 


NZ dollar steady as investors await RBNZ rate decision

NZ dollar steady as investors await Reserve Bank interest rate decision on Thursday

By Tina Morrison

July 21 (BusinessDesk) - The New Zealand dollar is in for a quiet start to the week as traders look ahead to the looming Reserve Bank decision on interest rates on Thursday where a hike is expected.

The kiwi traded at 86.85 US cents at 8am in Wellington, from 86.97 cents at the New York close and 86.77 cents at 5pm in Wellington on Friday. The trade-weighted index was little changed at 80.86 from 80.84 on Friday.

Reserve Bank governor Graeme Wheeler is expected to hike the official cash rate for the fourth time this year, taking the benchmark to 3.5 percent. The higher interest rates available in New Zealand, along with its stable government and strong credit rating, has lured overseas investors and pushed up the local currency 6 percent so far this year. Still, weaker commodity prices and benign inflation may prompt the central bank to pause until December after this month's hike, economists say.

"Domestically, this week will be all about Thursday's RBNZ meeting," Kymberly Martin, senior market strategist at Bank of New Zealand, said in a note. "The market currently prices around an 85 percent chance of a 25 basis point hike at the meeting."

BNZ's Martin said the currency has support at 86.50 US cents in a quiet start to the week.

Today, net migration data for June will be released at 10:45am. The Reserve Bank has been tracking migration data closely in anticipation a recent surge in net migration should taper off soon, Martin said. In May, the country added a net 3,980 migrants.

At 3pm, credit card spending and balance data for June will be published by the Reserve Bank.

The New Zealand dollar slipped to 92.45 Australian cents from 92.67 cents on Friday ahead of a speech by Reserve Bank of Australia governor Glenn Stevens to the Anika Foundation in Sydney tomorrow, which is open to media. Australia publishes inflation data for June on Wednesday.

The kiwi was little changed at 64.17 euro cents from 64.15 cents on Friday, and gained to 50.81 British pence from 50.72 pence.

The local currency advanced to 88.01 yen from 87.92 yen on Friday. Japanese banks are closed today in observance of Marine Day.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news