Dollar little changed as investors await US economic data
Kiwi traded at 73.17USc at 5pm in Wellington from 73.05USc at 8am and 73.06USc yesterday.
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The New Zealand dollar was little changed as investors awaited US data after markets in the world's biggest economy were closed for a holiday on Monday.
The kiwi traded at 73.17USc at 5pm in Wellington from 73.05USc at 8am and 73.06USc yesterday. The trade-weighted index increased to 76.16 from 75.98 yesterday.
Traders are awaiting US durable goods orders, services PMI and consumer confidence as they size up the chances of a rate hike by the Federal Reserve after chairwoman Janet Yellen signalled she expects to start tightening this year. Trading was thin in the local session after US markets were closed for the Memorial Day holiday, as well as bank holidays in the UK and Germany.
"The US comes back tonight so we might get a bit of movement again, with lots of data," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "The rest of the week is going to be watching the US data," which will provide leads for the kiwi dollar, he said.
Government figures today showed New Zealand's monthly trade surplus narrowed in April to $123 million as exports of milk powder declined. Fonterra Cooperative Group will update its farmer supplier-shareholders on the milk price on Thursday after the board meetings late on Wednesday.
Reserve Bank figures showed high loan-to-value ratio home lending was largely unchanged at about 5.8% of new loans at an LVR above 80%. The central bank will review monetary policy on June 11, and traders are pricing in a 48% chance of a cut, based on the Overnight Index Swap curve.
New Zealand's two-year swap rate increased 3.37% at 5pm in Wellington from 3.35% yesterday, and the 10-year swap rate advanced to 4.01% from 3.97%.
The kiwi dollar was little changed at 93.38Ac at 5pm in Wellington from 93.32Ac yesterday and rose to 4.5382 Chinese yuan from 4.5284 yuan.
The local currency climbed to 66.87 euro cents from 66.49c yesterday, and edged up to 47.33 British pence from 47.21p. It increased to ¥89.10 from ¥88.87 yesterday.
(BusinessDesk)
Paul McBeth
Tue, 26 May 2015
Tue, 26 May 2015
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Dollar little changed as investors await US economic data
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