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

 

RESEND: NZ dollar little changed as case for QE3 builds

RESEND: NZ dollar holds above 81 US cents as weak US, Chinese data stokes QE3 prospects

(Fixes garble in lead.)

By Hannah Lynch

Sept. 10 (BusinessDesk) - The New Zealand dollar held above 81 US cents after weaker-than-expected data out of the world's two largest economies, China and the US, stoked expectations their respective central banks will loosen monetary policy further.

The New Zealand dollar traded at 81.03 US cents at 8am in Wellington. That's down from 81.21 cents at the close of trading in New York and up from 80.26 cents at 5pm on Friday in New Zealand. The trade weighted edged down to 72.32 from 72.40.

Chinese industrial output grew at its slowest pace in three years, while retail sales rose in line with expectations, while producer prices fell for a sixth month, according to official figures. In the US, the world's largest economy, non-farm payrolls showed employers added 96,000 jobs in August, down from a 141,000 gain in July.

That's put pressure on the People's Bank of China to cut interest rates, and for the US Federal Reserve to initiate another round of quantitative easing in a bid to boost growth.

"If we start seeing central banks coming in and doing easing that mean they are devaluing their currencies and the kiwi will go higher," said Stuart Ive, currency strategist at HiFX. "The data had led to speculation the Fed will go to some form of quantitative easing at their meeting this week."

The median forecast from 59 economists polled by Reuters gave a 60 percent chance Fed Chairman Ben Bernanke will announce QE3 on Thursday at the conclusion of the two-day FOMC meeting this week.

Ive predicted the kiwi will finish the week higher, trading in a range of 80.10 US cents to 82.20 cents.

In New Zealand the economic survey of manufacturing for the June quarter from Statistics New Zealand is set for release today. That's followed by electronic card transactions for August on Tuesday and the accommodation survey for July on Wednesday.

The main focus for traders this week will be Reserve Bank Governor Alan Bollard's final monetary policy statement on Thursday, where he is expected to keep the official cash rate at 2.5 percent.

The New Zealand dollar fell to 63.25 euro cents from 63.36 cents at the close of trading in New York. The kiwi declined to 50.57 British pence from 50.67 pence and slipped to 63.37 yen from 63.55 yen. It was little changed at 78.17 Australian cents from 78.14 cents.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>



Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>

ALSO:


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>


Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>