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

 


NZ dollar pops above 84 US cents as focus turns to Yellen

NZ dollar pops above 84 US cents as focus turns to Yellen's speech at Jackson Hole

By Tina Morrison

Aug. 22 (BusinessDesk) - The New Zealand dollar gained overnight, popping back above the key 84 US cent level, as traders look to an upcoming speech by US Federal Reserve chair Janet Yellen to the annual Jackson Hole gathering of central bank governors, amid speculation on how soon interest rates will rise next year in the world's largest economy.

The kiwi rose to 84.03 US cents at 8am in Wellington, from 83.57 cents at 5pm yesterday. The trade-weighted index increased to 79.19 from 78.91 yesterday.

The US dollar index, which measures the greenback against a basket of currencies, slipped from its highest level in almost a year as traders weigh whether they read too much into suggestions in the Fed's minutes to its last meeting, where some thought comments about a better labour market signalled the Fed could hike rates sooner than previously expected. The focus is now on Yellen's speech, scheduled for 2am New Zealand time tomorrow, on "re-evaluating labor market dynamics"

"The New Zealand dollar/US dollar found its feet overnight as the US dollar broadly weakened," Kymberly Martin, senior market strategist at Bank of New Zealand, said in a note. "The US dollar has given up much of its post-Fed minute gain. The market is likely looking toward Fed Chair Yellen's speech at Jackson Hole this weekend. The risk is she pours cold water over yesterday's Fed minutes by reverting to a highly dovish script on the US labour market."

The kiwi has support at 83.50 US cents and faces resistance at 84.40 cents, the BNZ's Martin said.

Traders will also be eyeing a speech by European Central Bank president Mario Draghi at Jackson Hole, scheduled for 6:30am tomorrow New Zealand time, and Bank of England deputy governor for monetary policy Ben Broadbent tomorrow evening.

The New Zealand dollar advanced to 63.26 euro cents from 63.09 cents yesterday, rose to 50.68 British pence from 50.43 pence, increased to 87.23 yen from 86.76 yen and was little changed at 90.34 Australian cents from 90.32 cents.

(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