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

 

NZ dollar sticks to tight range ahead of Trump-Kim meeting

NZ dollar sticks to tight range ahead of Trump-Kim meeting, rate decisions

By Rebecca Howard

June 11 (BusinessDesk) - The New Zealand dollar stuck to a tight range as markets await news out of a meeting between US President Donald Trump and North Korean leader Kim Jong Un as well as a raft of central bank meetings this week.

The kiwi traded at 70.36 US cents as at 5pm in Wellington from 70.29 cents at 8am and 70.31 cents on Friday in New York. The trade-weighted index was at 73.68 from 73.65 last week.

Investors were jittery after Trump pulled out of a Group of Seven communique on the weekend but attention quickly shifted to the Trump-Kim Singapore meeting, set to take place Tuesday. Caution, however, remained.

The kiwi has "been in a pretty tight band," said Mark Johnson, senior trader foreign exchange at OMF in Wellington, adding it is largely fluctuating around the 70.30 level. "The market is lacking a bit of conviction here at the moment."

Regarding the Trump-Kim meeting, he said "any smoothing in relations will be viewed as a step in the right direction," and will be positive for risk.

Investors are also preparing for rate decisions and statements from the US Federal Reserve, the European Central Bank and the Bank of Japan this week.

Johnson said markets are waiting to see if the US central bank - which will hold a two-day meeting starting June 12 - updates its dot plot to forecast three more rate hikes this year. However, "why would they necessarily want to be more upbeat than they need to be," he said.

On the ECB - which meets June 14 - investors are waiting to see if it signals plans to start unwinding its massive bond-purchasing programme but slightly softer data out of France and Germany of late could mean they are reluctant, he said. "Growth concerns for the euro zone could lead to a slightly more dovish outlook for the ECB." It that's the case, a recent rebound in the euro will reverse, he said.

The kiwi traded at 59.63 euro cents from 59.71 cents last week and was little changed at 52.45 British pence from 52.41 pence. The kiwi rose to 77.23 yen from 76.96 yen last week.

The kiwi gained to 92.52 Australian cents from 92.31 cents on Friday in New York and increased to 4.5070 Chinese yuan from 4.4988 yuan.

New Zealand's two-year swap rate rose 1 basis point to 2.23 percent and 10-year swaps were unchanged at 3.20 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Up 0.5%: GDP Growth Eases Slightly

Gross domestic product (GDP) rose 0.5 percent in the March 2018 quarter, Stats NZ said today. This followed a 0.6 percent increase in the December 2017 quarter. Growth in service industries more than offset a fall in construction activity. More>>

ALSO:

Baby Formula: Fonterra Satisfied With Beingmate's Response To Error

Fonterra Cooperative Group is satisfied Beingmate Baby & Child Food is taking the right steps to deal with a labelling issue after getting caught out in a widespread audit by Chinese regulatory authorities. More>>

ALSO:

Adjusted, A Deficit: Current Account Turns To Surplus

New Zealand's current-account turned to a surplus in the first quarter, bolstered by the services balance as tourism remained strong. More>>

ALSO:

Housing: Foreign Buyer Ban Gets Smoother Edges

Amendments to the government’s foreign buyer ban, if introduced, would give overseas investors more leeway to put money into New Zealand housing developments. More>>

ALSO:

Te Kuha: Govt Declines Application To Mine Conservation Land

An application to mine coal on public conservation land near Te Kuha in the Buller District has been declined, Minister of Conservation Eugenie Sage and Minister of Energy Resources Megan Woods announced today. More>>

ALSO: