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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news