Dollar little changed as Trump, Yellen awaited; trade data looms
Trade data and a business confidence survey expected to underline the strength of the NZ economy.
Hot Topic
Hawke’s Bay
The dollar remained in a tight trading range as financial markets await a key policy address by US President Donald Trump and a speech by Federal Reserve chairwoman Janet Yellen at the end of the week.
Locally, trade data and a business confidence survey may underline the strength of the NZ economy.
The kiwi traded at 71.97USc at 8am in Wellington, from 71.94USc late yesterday. The trade-weighted index was at 78.29 compared with 78.24.
The dollar has been confined to a range of about 71.27USc to 72.46USc for almost three weeks, with markets waiting for details of President Trump's policy plans while weighing the chances the Fed will hike rates as soon as next month.
US Treasury Secretary Steven Mnuchin said last weekend President Trump will use a speech on Tuesday to outline tax cuts for companies and the middle class, a move that would be seen as a boost to the US economy.
"President Trump has said he will talk about his budget so the markets will be expecting greater granularity than has so far been forthcoming," ANZ Bank New Zealand senior rates strategist David Croy says.
"With no sound reason to be strategically long or short, the NZD continues to range trade and is unlikely to stray too far until Fed chairwoman Yellen's speech on Friday night."
Croy says New Zealand economic data this week "are likely to emphasise the story of an economy that is doing very well."
New Zealand's merchandise trade deficit is expected to have narrowed to $3 million in January from $41 million a month earlier. That's followed this afternoon by the ANZ business confidence survey.
The kiwi traded at 57.82 British pence from 57.89 pence late yesterday. It rose to 93.69Ac from 93.55Ac and slipped to 67.94 euro c from 68.10 euro c. The kiwi rose to 81.11 yen from 80.71 yen and fell to 4.9377 yuan from 4.9468 yuan.
(BusinessDesk)
Jonathan Underhill
Tue, 28 Feb 2017
Tue, 28 Feb 2017
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Dollar little changed as Trump, Yellen awaited; trade data looms
65202