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

 


NZ dollar holds gain as ECB meeting, US employment loom

NZ dollar holds gain as ECB meeting, US employment loom

By Paul McBeth

Sept. 4 (BusinessDesk) - The New Zealand dollar held gains in local trading as investors await the European Central Bank meeting and US employment in coming days, having recovered some appetite for risk-sensitive assets on growing confidence a ceasefire in Ukraine will be achieved.

The kiwi traded at 83.20 US cents at 5pm in Wellington from 83.27 cents at 8am, up from 82.94 cents yesterday. The trade-weighted index was little changed at 78.67 from 78.63 yesterday.

The ECB will review monetary policy on Thursday in Brussels and is expected to keep the status quo, though investors will watch president Mario Draghi for any commentary on potential stimulus injection for the regional economy. That comes ahead of US employment figures for the month of August on Friday, which is seen as a gauge on whether the Federal Reserve will shift away from its near-zero interest rate policy.

"Today's trading has really been one of trying not to do much ahead of pretty big risk events in the next couple of days," said Raiko Shareef, currency strategist at Bank of New Zealand in Wellington. "For someone who's bearish, it's quite good to see the kiwi's not rebounding higher, and the bias is still to the downside."

The local currency got a boost earlier in the day on reports Russian and Ukrainian leaders had agreed on steps toward a ceasefire in eastern Ukraine, helping ease tensions that have stoked demand for safer assets.

Figures today showed New Zealand property values rose at the slowest annual pace in 14 months, as rising interest rates, home loan restrictions on low-equity mortgages and the upcoming general election weighed on the market. The country's housing market had been an area of concern for the Reserve Bank, which it saw as threatening New Zealand's financial stability in the event of a downturn.

The kiwi was little changed at 87.21 yen at 5pm in Wellington from 87.23 yen yesterday after the Bank of Japan kept interest rates near zero and retained its quantitative easing programme to expand the monetary base at an annual pace of about 60 to 70 trillion yen.

The local currency fell to 89.01 Australian cents at 5pm in Wellington from 89.37 cents yesterday, and edged up to 63.27 euro cents from 63.18 cents. It increased to 50.55 British pence from 50.40 pence yesterday.

(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