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

 


NZ dollar little changed ahead of Fed meeting

NZ dollar little changed ahead of Fed meeting, heavy US data flow

By Paul McBeth

July 28 (BusinessDesk) - The New Zealand dollar was little changed from the New York close as investors prepare for a heavy news flow from the US, including the Federal Reserve's latest policy review, an economic growth reading, capped off with employment figures at the end of the week.

The kiwi traded at 85.63 US cents at 8am from 85.51 cents on Friday in New York and 85.73 cents at 5pm in Wellington. The trade-weighted index was 79.90 from 79.94 at the New York close.

The US dollar index, a measure of the greenback against a basket of currencies, climbed to a four month high as traders focus on US news this week, which includes the Federal Open Market Committee meeting, which is expected to continue the move away from extraordinary policy, the first reading of second-quarter US gross domestic product, manufacturing and non-farm payrolls for July.

Investors are anticipating the data will continue to show signs of an improving economy, which will encourage the Fed to start lifting interest rates from zero, which would increase the attraction of the greenback.

"Data due this week will determine whether or not this strength is justified, with the calendar packed with top-tier US releases," Bank of New Zealand currency strategist Raiko Shareef said in a note.

The local currency sank 1.7 percent last week after the Reserve Bank of New Zealand talked up the chance of intervening in foreign exchange markets, calling its strength "unjustified", which was seen as an explicit reference to its intervention policy.

BNZ's Shareef said the market is closely watching for signs of an intervention, and the Reserve Bank's June foreign exchange statistics will be released on Wednesday.

"We remain on the sceptical side of the debate, given that action to weaken the NZD would be inflationary, and run contrary to the current stance of monetary policy (disinflationary)," he said.

The local currency traded at 87.13 yen at 8am in Wellington from 87.07 yen on Friday in New York, and edged up to 91.09 Australian cents from 90.99 cents. It was little changed at 63.73 euro cents from 63.65 cents last week, and traded at 50.43 British pence from 50.37 pence.

(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

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news