NZ dollar holds steady as traders await RBNZ decision
Dolar little change ahead of OCR announcement.
The New Zealand dollar was little changed ahead of the Reserve Bank meeting this morning where Governor Graeme Wheeler is expected to reduce the benchmark interest rate.
The kiwi was at 66.36USc at 8am in Wellington, from 66.28USc at 5pm yesterday. The trade-weighted index was at 72.09 from 72.10 yesterday.
The local currency has slid 1.6% this week leading up to today's Reserve Bank interest rate decision.
Some 21 of 24 economists polled by Reuters expect the central bank to cut the benchmark rate by a quarter point to 2.5%. Traders have increased their bets for a quarter point cut to 81%, from 68% at the start of the week, according to Thomson Reuters data.
"The New Zealand dollar has continued to weaken against most of its major trading partners ahead of this morning's RBNZ monetary policy statement,"
. "The market is poised as well as partially positioned for the RBNZ to cut the overnight cash rate by 25 basis points, and should this be the case, it will be the tone of Reserve Bank Governor Wheeler's statement that will determine direction thereafter,” HiFX senior trader Michael Johnston said in a note.
Also this morning, Fonterra is expected to update the market on its forecast payout to farmers. Dairy products are New Zealand's biggest commodity export, and a decline in global prices sparked the RBNZ to start cutting rates earlier this year.
Other releases scheduled for today include the Real Estate Institute's monthly house sales data, and Statistics New Zealand releases on accommodation and electronic card spending for November.
Elsewhere, the Bank of England also reviews policy today and Australia publishes employment data for November.
The New Zealand dollar advanced to 92Ac from 91.76Ac yesterday, slid to 60.21 euro cents from 60.77 euro cents, fell to 43.72 British pence from 44.15 pence, declined to 80.42 yen from 81.38 yen, and edged up to 4.2675 yuan from 4.2570 yuan.
(BusinessDesk)
Tina Morrison
Thu, 10 Dec 2015
Thu, 10 Dec 2015
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NZ dollar holds steady as traders await RBNZ decision
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