Dollar little changed ahead of interest rate reviews
Kiwi was at 67.77USc at 8am in Wellington.
The New Zealand dollar was little changed as traders await tomorrow's interest rate decisions from the Federal Reserve and the Reserve Bank.
The kiwi was at 67.77USc at 8am in Wellington, from 67.75USc at 5pm yesterday. The trade-weighted index was at 73.13 from 72.96 yesterday.
While few expect either the Federal Open Market Committee or the Reserve Bank to change interest rates when their decisions are announced tomorrow morning, investors will be looking for clues as to the timing of future policy, with the Fed looking to hike rates while the Reserve Bank is expected to ease further. The Fed decision is scheduled for release at 7am tomorrow while the Reserve Bank is due at 9am.
"Markets continued to wash around, awaiting the Fed," ANZ Bank New Zealand senior economist Mark Smith and senior FX strategist Sam Tuck said in a note. "We expect the New Zealand dollar to continue to trade in a tight range until tomorrow morning's Fed and Reserve Bank meetings shatter the peace."
ANZ expects the kiwi to trade between 67.40USc and 68.60USc today.
The local focus today will be on Australian third-quarter inflation data scheduled for release at 1:30pm New Zealand time. Headline inflation is expected to rise 0.7% in the quarter, with a 0.5% rise in the core inflation measure.
Any currency reaction to the data will probably be seen in the kiwi/Aussie cross as traders are reluctant to move the greenback ahead of the Fed, ANZ said.
The New Zealand dollar advanced to 94.20Ac from 93.63Ac yesterday, gained to 61.37 euro cents from 61.21 cents, increased to 44.29 British pence from 44.11p, slipped to ¥81.53 from ¥81.68 and edged higher to 4.3045 yuan from 4.3030 yuan.
(BusinessDesk)
Tina Morrison
Wed, 28 Oct 2015
Wed, 28 Oct 2015
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Dollar little changed ahead of interest rate reviews
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