NZ dollar hovers around 65USc after Fed holds steady
Traders eyeing RBNZ rates decision this morning
The New Zealand dollar hovered around 65Uc after the Federal Reserve kept interest rates on hold as expected and as traders await the Reserve Bank interest rate decision this morning.
The kiwi advanced to 65.18USc at 8am in Wellington, from 64.77USc at 5pm yesterday. It was trading at 65.06USc at 8.30am after the Fed's decision was released at 8am New Zealand time.
The Federal Reserve Open Market Committee says it is "closely monitoring" global economic and financial developments, although noted it expected the US labour market will continue to strengthen and the economy expand even with gradual adjustments in the stance of monetary policy, signalling it was likely to continue to hike rates.
In New Zealand, the Reserve Bank is also expected to keep rates on hold at 9am, and traders will be closely eyeing any comments on the outlook for signs of further easing.
"Direction today is in the hands of central bankers," ANZ Bank New Zealand senior economist Sharon Zollner and senior foreign exchange strategist Sam Tuck say. "We expect both banks to confirm existing policy stances."
ANZ expects the kiwi to trade between 63.80USc and 66.50USc today.
New Zealand publishes December merchandise trade data at 10.45am.
The local currency gained to 59.84 euro c from 59.59 euro c yesterday, increased to 77.54 yen from 76.49 yen, advanced to 45.68 British pence from 45.16 pence, rose to 4.2792 yuan from 4.2615 yuan. It slipped to 92.05Ac from 92.36Ac yesterday.
The trade-weighted index advanced to 71.64 from 71.29 yesterday.
(BusinessDesk)
Tina Morrison
Thu, 28 Jan 2016
Thu, 28 Jan 2016
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NZ dollar hovers around 65USc after Fed holds steady
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