Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

NZ dollar falls ahead of US CPI, Spencer speech

NZ dollar falls ahead of US CPI, Spencer speech

By Jonathan Underhill

March 13 (BusinessDesk) - The New Zealand dollar fell ahead of US inflation data, which may provide clues to the pace of US rate hikes, while domestically traders will be watching for a speech by acting Reserve Bank governor Grant Spencer and February food prices.

The kiwi declined to 72.93 US cents as at 8am in Wellington from 73.23 cents late yesterday. The trade-weighted index fell to 74.71 from 75.03.

US consumer price inflation excluding food and energy may have slowed to 0.2 percent in February for an unchanged year-on-year rate of 1.8 percent, based on economist surveys. The data comes after employment figures last Friday showed slower-than-expected wage growth, which had traders questioning whether the Federal Reserve will hike three times or four this year. The Federal Open Market Committee meets next week.

"An upside surprise (and what that could potentially suggest for Fed tightening) could lead to some currency volatility," said Philip Borkin, senior economist at ANZ Bank New Zealand, in a note.

In the interest rate market, the focus is on the pricing for the Debt Management Office's 2029 bond syndication, with initial guidance at 16 to 19 basis points over the 2027 nominal bond. Borkin said ANZ's fair value estimate is for a spread of 16 basis points. He also said the DMO may sell $2 billion of the debt, the top end of its $1.5 billion to $2 billion range, and he expects "solid" demand.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

The yield on the April 2027 government bond was last at 3.02 percent.

Today Spencer is due to give a speech entitled 'Getting the best out of macroprudential policy', while the food price index for February is due out at 10:45am. In Australia, the NAB business confidence survey for February will be in focus.

The kiwi fell to 77.56 yen from 78.05 yen yesterday and declined to 92.60 Australian cents from 93.06 cents. It fell to 59.09 euro cents from 59.39 cents and declined to 52.43 British pence from 52.81 pence. The local currency fell to 4.6143 yuan from 4.6333 yuan.

(BusinessDesk)

ends

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.