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: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news