Dollar little changed as Fed officials keep US rate view intact
Kiwi was little changed at 66.09USc at 8am in Wellington.
The New Zealand dollar consolidated overnight as comments from Federal Reserve officials kept expectations intact for a rate hike next month.
The kiwi was little changed at 66.09USc at 8am in Wellington, from 66.10USc at 5pm yesterday. The trade-weighted index slipped to 70.36 from 70.45 yesterday.
In the US, comments from Fed officials appeared to reiterate the possibility of a rate hike at the Fed's next two-day meeting on September 16-17. Atlanta Fed president Dennis Lockhart said he was "very disposed" to a September rate hike, though a gradual path of policy normalisation means that the Fed would not increase rates at every meeting. Meanwhile, Fed vice-chairman Stanley Fischer highlighted low inflation.
"Statements from Fed officials overnight seem to be consistent with the message that the market should expect some action from the Fed at the September meeting," said Bancorp Treasury Services client adviser Peter Cavanaugh. "No surprise is good. It can be boring but it's actually a welcome break from some of the volatility that we've seen in recent weeks."
Cavanaugh said the kiwi was in a consolidation phase with little new data.
"It's one of those occasional quiet nights where the markets had a chance to catch their breath," he said.
In New Zealand today, electronic card spending data for July is scheduled for release.
The New Zealand dollar slipped to 89.17Ac from 89.29Ac yesterday ahead of a report on Australian business confidence.
The local currency fell to 59.98 euro cents from 60.23c yesterday ahead of a report on German business sentiment.
The kiwi declined to 42.40 British pence from 42.67p yesterday and increased to ¥82.33 from ¥82.22.
(BusinessDesk)
Tina Morrison
Tue, 11 Aug 2015
Tue, 11 Aug 2015
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Dollar little changed as Fed officials keep US rate view intact
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