Kiwi holds in recent range ahead of Jackson Hole
The New Zealand dollar barely moves as traders ponder whether firm details of US monetary stimulus will be revealed at this weekend's central bankers' retreat.
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BUSDINESSDESK: The New Zealand dollar slipped against the greenback, while remaining in its recent trading range, as traders pondered the potential for concrete details of US monetary stimulus to be revealed at the Jackson Hole, Wyoming, central bankers' retreat this weekend.
The kiwi fell to 80.81 US cents from 81.05 cents at 5pm in Wellington yesterday. The trade-weighted index fell to 72.74 from 72.86.
The local currency has held in a range of about 80.50 cents to 82.20 cents since late July.
Federal Reserve chairman Ben Bernanke heads the speakers' list at Jackson Hole and may amplify on the minutes for the last Federal Open Market Committee minutes, which showed many members favour more stimulus for the US economy.
Still, Bloomberg today cited economists saying investors may be disappointed as Mr Bernanke may talk only in broad terms.
"Risk appetite remains fairly robust, but the market is slightly directionless as it awaits Friday's Jackson Hole meeting," says Kymberly Martin, a strategist at Bank of New Zealand. "There is some speculation that Bernanke may disappoint expectations for him to signal new stimulus at the meeting."
The New Zealand dollar fell to 64.66 euro cents from 64.76 cents.
After a measure of German business confidence fell less than some economists had feared and German Finance Minister Wolfgang Schaeuble announced Germany will work with France on proposals for fiscal, banking and monetary union in Europe.
European Central Bank chief Mario Draghi also speaks at Jackson Hole and may elaborate on his determination to resume buying sovereign bonds, a plan opposed by Germany's Bundesbank.
The kiwi fell to 63.65 yen from 63.81 yen and declined to 51.17 British pence from 51.26 pence. It fell to 77.88 Australian cents from 77.99 cents.
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Kiwi holds in recent range ahead of Jackson Hole
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