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

 

NZ dollar gains against greenback as markets digest Fed

NZ dollar gains against greenback as markets digest Fed statement

By Rebecca Howard

June 14 (BusinessDesk) - The New Zealand dollar gained against the greenback as markets digested US Federal Open Market Committee statement and subsequent press conference. It also got a lift against the Aussie on disappointing jobs data across the Tasman.

The kiwi dollar traded at 70.28 US cents as at 5pm in Wellington from 70.18 cents at 8:30 am and versus 70.11 cents late yesterday. It traded at 92.89 Australian cents from 92.62 cents late yesterday.

The kiwi initially fell on a stronger US dollar after the Federal Reserve hiked interest rates as expected and projected another two hikes in 2018 and three in 2019. However, it pared those losses when "the statement wasn't as hawkish as it might have appeared in a 10-second quick skim," said Imre Speizer, senior markets strategist at Westpac Banking Corp in Auckland.

While the Fed's so-called dot plot projection now points to another rate increase this year "that was only caused by one person in the whole committee shifting (their view) up a notch," he said. Speizer also said that Fed Chair Jerome Powell didn't quite "capture the more bullish feeling about the economy" that was apparent in the statement. "He cooled things off a bit when he spoke," he said. He added that the dollar also lost ground when Powell said news that the Fed will now hold more press conferences "has no implication for the stance of monetary policy, it's just extra communication," said Speizer.

Across the Tasman, the number of people employed rose by 12,000, undershooting an expected 19,000 increase, the Australian Bureau of Statistics said. That news weighed on the Australia dollar, Speizer said.

Looking ahead markets will be waiting to see if the European Central Bank offers any details about an "explicit end date" for quantitative easing, said Speizer. If they don't, the euro will likely fall whereas if they offer something concrete it will gain, he said.

The local currency traded at 59.51 euro cents from 59.70 cents yesterday and at 52.46 British pence from 52.47.

It fell to 77.40 yen from 77.56 yen and traded at 4.4936 yuan from 4.4903 yuan. The trade-weighted index was at 73.71 from 73.62

New Zealand's two-year swap rate was unchanged at 2.23 percent and 10-year swaps fell 3 basis points to 3.16 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Collective Bargaining For Contractors: Working Group's Model For Screen Sector

A recommended model to allow collective bargaining for contractors in the screen sector has today been unveiled by the Government-convened Film Industry Working Group. More>>

ALSO:

Kauri Dieback: DOC Closing Tracks To Protect Trees

The Department of Conservation will close 21 tracks across kauri land to help prevent the spread of kauri dieback. An additional 10 tracks will also be partially closed and the open sections upgraded... More>>

Price Of Cheese: Dairy Product Prices Descend

Dairy product prices fell at the Global Dairy Trade auction as whole milk powder slid amid the prospect of increased supply. More>>

ALSO:

Deductible Horses: Peters' Bloodstock Investment Plan

“Cabinet has approved the final design of the bloodstock rules which were first signalled in Budget 2018. Investors new to bloodstock breeding will be able to claim tax deductions for the cost of horses, even if they don't own an existing horse breeding business...” More>>

Petrol Up 19%: Annual Inflation To September 1.9 Percent

The consumers price index (CPI) increased 1.9 percent in the September 2018 year, driven by higher petrol prices, Stats NZ said today. This follows a 1.5 percent annual inflation rate for the June 2018 year. More>>

ALSO:

Young Males Common Victims: NZ Tops List Of Most-Scam-Called Countries

Among the 16 nationalities surveyed for the 2018 Global Tech Support Scam Research conducted by TRG, New Zealanders reported the highest levels of exposure to tech scams, with more than three-quarters of us experiencing at least one. More>>