Kiwi falls on poll results, US inflation
The New Zealand dollar has fallen half a cent to US72.37 cents following volatile election polls and news of tax reform progress in the United States.
14 September 2017
The New Zealand dollar has fallen as US Republicans signalled progress on tax reforms and as financial markets await US inflation figures and, for New Zealand, the latest opinion poll.
The kiwi dollar declined to US72.37 cents as at 8am on Thursday in Wellington from US72.87c late Wednesday. The trade-weighted index fell to 75.51 from 75.78.
Figures overnight showed US producer prices for final demand rose 0.2 per cent in August after a 0.1 per cent drop in July. The data comes ahead of the consumers price index for August, which is expected to show inflation accelerated to 0.3 per cent from 0.1 per cent the previous month.
"Firming USD sentiment, together with a bit of exhaustion on the part of the NZD, has seen kiwi drop back to around where it was prior to Tuesday night's political poll that caused all the fireworks," said ANZ Bank senior economist Sharon Zollner.
"However, there could still be more fireworks to come, with it likely that another poll is out this evening, followed by US CPI figures tonight."
The Colmar Brunton poll will be keenly watched because it was the same poll last week that surprised markets by putting Labour ahead on 43 per cent to National's 39 per cent. That was reversed in this week's Newshub Reid Research poll, which put National on 47.3 per cent to Labour's 37.8 per cent.
On Thursday morning, the kiwi fell to 90.63 Australian cents from A90.80c late Wednesday. It declined to 80.01 yen from 80.26 yen and fell to 4.7330 yuan from 4.7543 yuan. The kiwi traded at 60.89 euro cents from 60.81c and traded at 54.80 British pence from 54.76p.
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