News | Business
24 Mar 2018 23:12
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • News
  • Sport
  • Weather
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    New Zealand dollar trades in tight range

    NZ dollar sticks to tight range ahead of US CPI data.

    13 March 2018

    The New Zealand dollar was little changed, holding in a tight range in jittery markets ahead of US inflation data due later in the global trading day.

    The Kiwi traded at 73.12 US cents as at 5pm in Wellington from 72.93 US cents as at 8am and from 73.23 cents late Monday. The trade-weighted index traded at 74.01 from 75.03.

    The US inflation data is in the limelight as investors try to guess the trajectory of policy tightening by the US Federal Reserve. The CPI may have slowed to 0.2 per cent in February for an unchanged year-on-year rate of 1.8 per cent, according to economists.

    If inflation is lower than expected it will add to the view that the Fed is only likely to lift rates three times this year, rather than four. Markets had already pared back their US rate hike expectations after a slowdown in the pace of US wage growth late last week.

    On the day, the US dollar has been on a "raggedy trend down," said Imre Speizer, Westpac Banking Corp market strategist.

    "It's weakening into that number of some fear of a disappointment," he said.

    Looking ahead, he said domestic investors will then shift their focus to Thursday's gross domestic product data, with economists tipping the economy to have expanded 0.8 per cent on quarter in the fourth quarter.

    While the data is fairly historic, "it is the most important piece of economic data you can get because it is the number that wraps up the whole economy." Mr Speizer said.

    It is particularly important to the central bank "when it is surprised by the number."

    The Kiwi fell to 77.91 yen from 78.05 yen Monday and declined to 92.85 Australian cents from 93.06 cents. It eased to 59.30 euro cents from 59.39 cents and declined to 52.60 British pence from 52.81 pence. The local currency fell to 4.6244 yuan from 4.6333 yuan.

    Meanwhile, the Debt Management Office announced that $2.0 billion of 20 April 2029 nominal bonds have been issued via syndication.

    The bonds, which carry a coupon of 3 per cent, were issued at a spread of 16 basis points over the April 15, 2027 nominal bond, at a yield to maturity of 3.135 per cent. Total book size, within the initial pricing guidance range of 16 to 19 basis points, exceeded $5b.

    New Zealand's two-year swap rate rose 4 basis point to 2.26 per cent and the 10-year swap rate was unchanged at 3.25 per cent.

    © 2018 NZN, NZCity

     Other Business News
     24 Mar: Lance O'Sullivan calls for pokies ban
     23 Mar: Armed bank robbery in Whangarei
     23 Mar: Tait wins London bus radio contract
     23 Mar: Auckland sees surge in Chinese tourists
     23 Mar: Robotics Plus gets Yamaha backing
     23 Mar: Kiwi down on yen and greenback
     22 Mar: NZ dollar gains against Australian dollar
     Top Stories

    Isaako channels Dan Carter in record night More...

    Lance O'Sullivan calls for pokies ban More...

     Today's News

    Rugby League:
    Warriors cause more misery for Raiders 21:55

    John Stamos "can't wait" to be a dad 21:45

    Kevin Smith has lost 20lbs since his near-fatal heart attack 21:15

    Hamilton claims Aussie GP pole position 21:15

    Sexual assault allegations against Ed Westwick are being reviewed by authorities 20:45

    United prepared for NBL 'war' in Adelaide 20:25

    Emily Blunt thought she would "die" when she had to fly as Mary Poppins 20:15

    Ellie Goulding will attend Prince Harry's wedding to Meghan Markle 19:45

    Silver Ferns still chasing netball gold 19:45

    Owen Wilson allegedly caused an entire hotel to be evacuated 19:15

     News Search

    Power Search

    © 2018 New Zealand City Ltd