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

 

NZ dollar heads for 1.3 percent weekly decline on TWI basis

NZ dollar heads for 1.3 percent weekly decline on TWI basis after central bank meetings

By Paul McBeth

Jan. 31 (BusinessDesk) - The New Zealand dollar is heading for a 1.3 percent fall on a trade-weighted basis this week after the Reserve Bank kept interest rates on hold and the Federal Reserve trimmed another US$10 billion from its bond buying programme.

The trade-weighted index fell to a month-low, trading at 77.26 at 5pm in Wellington from 78.31 at the close of trading last week, and was down from 77.44 yesterday. The kiwi traded at 81.51 US cents at 5pm from 81.41 cents at 8am, down from 81.78 cents yesterday. It’s heading for a 0.7 percent weekly fall from 82.11 cents at the close of trading last week.

A BusinessDesk survey of six traders and strategists on Monday predicted the local currency would trade between 80.80 US cents and 84.20 cents this week. Four predicted the kiwi would fall this week, while two expected it to remain largely unchanged.

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.5 percent on Thursday, while saying he would hike rates soon in response to building inflationary pressures. In a speech to a Canterbury business audience today, Wheeler flagged inflation as an important risk to local economic growth, with accelerating building activity threatening to drive up broader consumer prices.

“The fact remains we will see interest rate hikes this year – that’s a given,” said Dan Bell, head of corporate sales at HiFX in Auckland. “We’re going to be one of the only central banks in the developed world raising interest rates, and that should continue to provide support for the New Zealand dollar.”

The US Federal Reserve also reviewed its policy this week in chairman Ben Bernanke’s final meeting, keeping interest rates near zero and winding back its quantitative easing programme to US$65 billion a month from US$75 billion.

HiFX’s Bell said the removal of monetary stimulus should support the greenback as capital is repatriated back to the US. While “the New Zealand dollar won’t necessary fall out of bed, it will struggle to carry through on rallies to the 83 cent mark” and strength in the local currency will likely be borne out on the cross-rates, he said.

New Zealand government figures today showed the country posted a trade surplus of $523 million in December, in line with expectations, with rising sales of dairy products to China underpinning export growth.

The local currency sank to 92.77 Australian cents from 93.60 cents yesterday, and slipped to 83.54 yen from 83.67 yen. It increased to 60.12 euro cents from 59.91 cents, and was little changed at 49.45 British pence from 49.39 pence.

(BusinessDesk)


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:

Economy: COVID-19 Contributes To 1.6 Percent Fall In March Quarter GDP

Gross domestic product (GDP) fell 1.6 percent in the March 2020 quarter, the largest drop in 29 years, as the initial effects of COVID-19 restrictions impacted on economic activity, Stats NZ said today. This quarter’s GDP results showed a widespread drop ... More>>

ALSO:


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>

ALSO:

ASB: Investor Confidence Falls To Four-Year Low

As the world grapples with the fallout from the most significant pandemic the world has seen in a century, economic concerns are weighing on investors, dragging investor confidence down to a four-year low in the first quarter of the year. For the three ... More>>

ALSO:

Science Media Centre: Funding For R&D In New Zealand – Expert Reaction

Research, Science and Innovation Minister Dr Megan Woods has today announced $401.3 million funding for research and development through Budget 2020 and the COVID Response and Recovery Fund. The fund includes $150 million for an R&D loan scheme, ... More>>

ALSO:


Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

Potatoes New Zealand: Protecting NZ Fries As Part Of PNZ Pandemic Recovery & Transformation Plan

Potatoes New Zealand has met with Minister Faafoi this week to discuss investigating the potential importation of heavily discounted frozen potato chips into New Zealand. With MBIE’s support we are undertaking an investigation to gather evidence of the ... More>>

ALSO:


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO:


Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO: