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)