Kiwi holds above 83 US cents before Fed policymakers meet

The New Zealand dollar was little changed above 83 US cents after testing the upper limits of its recent trading range as traders await this week's meeting of Federal Reserve policymakers.

The kiwi traded at 83.36 US cents from 83.31 cents at 5pm in Wellington yesterday. It earlier reached 83.53 cents, a level it has not seriously breached since March. The trade-weighted index fell to 74.57 from 74.64.

The New Zealand dollar got a lift yesterday after Fonterra raised its milk payment forecast and manufacturing data printed stronger than some economists had expected.

Currency markets generally held within their trading ranges overnight as traders pondered the prospects of more quantitative easing from the Fed and awaited any signs of progress in Washington on the fiscal cliff.

"Currency markets are suffering somewhat from subdued volumes and a lack of conviction as investors look ahead to Wednesday morning's FOMC decision," says Mike Jones, strategist at Bank of New Zealand. 

This week holds mainly second-tier economic data in New Zealand, starting with electronic card transactions today and "a cautious recovery theme is expected to prevail", he says.

The kiwi was little changed at 79.51 Australian cents, fell to 64.44 euro cents from 64.58 cents and dropped to 51.87 British pence from 51.96 pence. It slid to 68.63 yen from 68.70 yen.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7846 -0.0005 -0.06%
AUD 0.8934 -0.0025 -0.28%
EUR 0.6195 -0.0021 -0.34%
GBP 0.4899 0.0005 0.10%
HKD 6.0862 -0.0038 -0.06%
JPY 84.3450 0.2230 0.27%

Commods

Commodity Price Change Time
Gold Index 1241.1 -7.450 2014-10-22T00:
Oil Brent 84.7 -1.510 2014-10-22T00:
Oil Nymex 80.5 -1.970 2014-10-22T00:
Silver Index 17.2 -0.310 2014-10-22T00:

Indices

Symbol Open High Last %
NZX 50 5279.7 5299.9 5279.7 0.25%
NASDAQ 4429.2 4435.9 4419.5 -0.83%
DAX 8873.5 9017.8 8940.1 -0.12%
DJI 16615.3 16653.9 16614.8 -0.92%
FTSE 6399.7 6403.3 6399.7 -0.76%
HKSE 23296.0 23397.2 23404.0 -0.30%
NI225 15093.8 15232.5 15195.8 -0.37%