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

 


NZ dollar slips before US CPI as OCR review looms

NZ dollar slips before US CPI as OCR review looms

By Jonathan Underhill

July 22 (BusinessDesk) - The New Zealand dollar fell before the release of US consumer prices for June, amid speculation inflation in the world's biggest economy may have accelerated enough to bring forward the timing of interest rate hikes.

The kiwi traded at 86.74 US cents at 5pm in Wellington, from 86.89 cents at the start of the day and from 87.12 cents yesterday. The trade-weighted index declined to 80.77 from 81.05 yesterday.

US consumer prices rose at an annual pace of 2.1 percent in June, unchanged from a month earlier, according to a Reuters survey. That would keep the gain at its fastest since October 2012. The US data comes ahead of the Reserve Bank of New Zealand's review of the official cash rate on Thursday, which is expected to see the OCR lifted a quarter point to 3.5 percent, compared to near zero for the Federal Reserve.

"If US CPI ticks up there could be a significant move up in the US dollar," said Tim Kelleher, head of institutional FX sales at ASB Bank. The kiwi "is looking a little bit defensive ahead of Thursday."

Kelleher expects RBNZ governor Graeme Wheeler, in raising the OCR, may also warn that the currency is over-valued given weaker prices for key New Zealand commodities such as dairy and logs.

The kiwi dollar traded above 88 US cents last week before Federal Reserve chair Janet Yellen gave hints the US economy may be travelling better than thought, global dairy prices fell and New Zealand second-quarter inflation printed weaker than expected.

The New Zealand dollar traded at 92.37 Australian cents, down from 92.72 cents yesterday, and fell to 64.15 euro cents from 64.32 cents. It fell to 50.78 British pence from 50.95 pence and traded at 88.04 yen from 88.18 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news