NZ dollar little changed in quiet trading
The New Zealand dollar was little changed in quiet trading on Monday ahead of retail sales data and a government economic and fiscal update tomorrow.The NZ dollar was US74.82c at 5pm from US74.95c at 5pm on Friday.The US dollar has been firm after US bond
The New Zealand dollar was little changed in quiet trading on Monday ahead of retail sales data and a government economic and fiscal update tomorrow.
The NZ dollar was US74.82c at 5pm from US74.95c at 5pm on Friday.
The US dollar has been firm after US bond yields surged as nascent improvements in the US economy continued, and a deal appeared to be reached on extending Bush-era US tax breaks.
In New Zealand, the focus is on upcoming data and the deteriorating yield gap with the US market.
"Household savings are on the road to recovery, well in advance of whatever the savings working group recommends. But Government finances are digging themselves a bigger hole," BNZ said.
"This divorce in national savings will likely be the theme of this week's institutional sector accounts and government half-year economic and fiscal update," BNZ said.
Retail sales data for October, which is due tomorrow, is the one of the last reports before the September quarter gross domestic product report on December 23. Economists are picking a small expansion in the economy but there is a chance it contracted.
NZ-US interest rate differentials fell last week and this is expected to be an ongoing negative factor for the NZ dollar. The yield on 10-year US Treasuries rose to the highest level in more than six months on Monday, helped by the outlook for better economic growth.
The 10-year bond yield rose to 3.34 percent, the highest level since early June.
The euro was weak today and that helped the NZ dollar rise to 5670 euro from 0.5657 euro on Friday. It was little changed at 62.89 yen from 62.74 yen on Friday.
The NZ dollar was little changed at A76.00c from A75.89c at 9.15am and A76.05c at 5pm on Friday. The trade weighted index rose slightly to 67.79 from 67.73.
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