NZ dollar little changed as financial stability report

Monday 28 November 2016 08:45 AM

NZ dollar little changed as financial stability report, US jobs data loom

By Jonathan Underhill

Nov. 28 (BusinessDesk) - The New Zealand dollar was little changed ahead of the Reserve Bank's financial stability report and testimony from Reserve Bank governor Graeme Wheeler on Wednesday and US labour market figures at the end of the week.

The kiwi dollar traded at 70.35 US cents from 70.37 cents in New York on Friday. The trade-weighted index was at 77.49 from 77.55.

Wheeler is scheduled to hold a media conference after the stability report on Wednesday and may take the opportunity to comment on monetary conditions, especially since the RBNZ's November monetary policy statement projects a rebound in inflation this quarter, pushing the annual rate back within the bank's target range. US payrolls on Friday are expected to show the economy added 165,000 jobs last month, enough to keep the Federal Reserve on track to hike interest rates this month.

"Domestically Wednesday’s RBNZ financial stability report followed by Governor Wheeler’s testimony should dictate direction for the NZD ahead of Friday night’s US monthly employment report," traders at HiFX said in a report.

As well as the latest US jobs data, an OPEC meeting and two speeches by European Central Bank President Mario Draghi will draw the attention of investors in the coming days. The Federal Reserve releases its Beige Book on Wednesday in the US. In New Zealand, figures are expected today on building consents for October and business confidence for November

The kiwi dollar fell to 94.35 Australian cents from 94.53 cents in New York on Friday. It traded at 56.35 British pence from 56.44 pence and traded at 66.32 euro cents from 66.44 cents. It was little changed at 4.8665 yuan and fell to 79.47 yen from 79.60 yen.

(BusinessDesk)

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