The New Zealand dollar is almost unchanged this week after the Federal Reserve's growing optimism on the strength of the US economy spurred demand for the greenback.
The kiwi traded at 85.32 US cents at 5pm in Wellington from 85.34 cents at the close of trading in New York last week. It traded at 85.31 cents at 8am and 85.27 cents yesterday. The trade-weighted index was little changed at 79.96 from 79.90 yesterday and 79.81 at last week's close.
A BusinessDesk survey of nine traders and strategists on Monday predicted the local currency would trade between 83.40 US cents and 86.50 cents this week. Six predicted the kiwi would decline this week, one expected an increase and two saw it largely unchanged.
The Fed yesterday signalled US interest rates may rise faster than traders were anticipating as the world's largest economy improves. In her first meeting as chair Janet Yellen told a press briefing rates might rise about six months after the asset purchase programme ended.
While the Fed's moves were positive for the greenback, New Zealand's currency held up with local data affirming the strength of the economy, which grew 0.9 percent in the three months ended Dec. 31. Government figures today showed annual inbound net migration at a decade high, while ANZ data showed upbeat consumer confidence.
"There's nothing to suggest the New Zealand side of the story is going to look weak," said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. "That should keep the kiwi in demand on any dips."
Traders will be watching early manufacturing indicators next week in China, Europe and the US for leads on how the global economy is tracking.
The local currency traded at 87.31 yen at 5pm in Wellington from 87.26 yen yesterday and fell to 94.17 Australian cents from 94.54 cents. It gained to 61.90 euro cents from 61.64 cents yesterday, and increased to 51.67 British pence from 51.54 pence.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- New lawyers not doing 'much better' than job at McDonald's – report surprises
- NBR ONLINE paid member subscribers top 4000
- Easy to axe overseas holidays, says insurer
- NZ dollar pushes above 71USc as investors regain confidence after Brexit vote
- Brexit applies a strong currency and customer-growth headwind to Xero
Most listened to
- NBR technology editor Chris Keall on hitting 4000 member subscribers
- InternetNZ's Andrew Cushen on the Search & Surveillance Act review - and his key areas of concern
- New Zealand Law Society president Kathryn Beck says young lawyers "will go" if the industry does not listen to a new report
- Craigs' analyst Stephen Ridgewell is forecasting Brexit will slow Xero's growth in Britain
- Google tax: Spark boss Simon Moutter says everything's above board with Southern Cross' use of tax-haven Bermuda