INDEPENDENT NEWS

NZ tad higher but rangebound

Published: Mon 12 Nov 2018 08:24 PM
NZ tad higher but rangebound, waiting for further developments
By Rebecca Howard
Nov. 12 (BusinessDesk) - The New Zealand dollar was slightly higher against the greenback but stuck to a tight range as markets wait for further data and for developments on the trade front.
The kiwi traded at 67.44 US cents at 5pm in Wellington from 67.33 US cents at 8.40 am and 67.37 cents late Friday. The trade-weighted index was at 73.83 from 73.57.
Trading - normally subdued on a Monday - was even quieter ahead of the US Veterans Day Holiday where the US bond market and government offices are closed but stock markets are open.
"The kiwi saw a bit of bounce this afternoon but there is no news," said Imre Speizer, Westpac Banking Corp's head of NZ strategy. He said trading will likely remain light overnight and investors will be looking ahead to data later in the week, such as the US inflation data.
Kiwibank chief economist Jarrod Kerr said the October housing market report from the real estate institute of New Zealand - due Wednesday - may attract some interest.
"Following a disappointing start to the usually buoyant spring season, there is the potential for uplift in sales activity in October," he said. It will be of particular interest given that the central bank may be looking at loosening lending requirements for house purchases when it publishes its Financial Stability Report later this month.
The kiwi could get a lift against the Australian dollar this week if Wednesday's jobs data across the Tasman doesn't point to any wage inflation, in particular after domestic jobs data was so strong.
The kiwi traded at 93.25 Australian cents from 93.27 cents Friday.
The US-China trade war also continues to loom over markets with the leaders of the two nations due to meet later this month. Federal Reserve Chair Jerome Powell is set to speak on Wednesday and investors will watch closely for any clues on the outlook for interest rates.
The New Zealand dollar traded at 52.12 British pence from 51.93 pence Friday, and was at 59.55 euro cents from 59.38. It was at 4.6931 Chinese yuan from 4.6747 yuan and at 76.87 yen from 76.72 yen.
New Zealand's two-year swap rate eased 1 basis point to 2.17 percent; the 10-year swaps were down 1 basis point to 3.08 percent.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Industry plan could create a billion dollar gaming sector
By: New Zealand Game Developers Association
Government moves to protect elite soils
By: New Zealand Government
Calls for overhaul of gene-technology regulations
By: Royal Society Te Aparangi
Card spending dips in July
By: BusinessDesk
Govt takes more action to reduce waste
By: New Zealand Government
Fonterra Provides Update on Earnings
By: Fonterra
NZ gaming industry outlines plan for home-grown 'Angry Birds
By: BusinessDesk
Interactive media a game changer for digital economy
By: New Zealand Government
Potatoes vs people: govt moves to protect top vege-growing
By: BusinessDesk
New Zealand First Backs Plans to Protect Productive Land
By: New Zealand First Party
LGNZ cautious as government pits potatoes against houses
By: Local Government NZ
HortNZ welcomes safeguarding of country’s best growing soils
By: Horticulture NZ
Anti-housing rules to keep Kiwis locked out
By: New Zealand Taxpayers' Union
Productive farming land dug up for housing
By: RNZ
Gene editing regulations – Expert Reaction
By: Science Media Centre
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media