NZ dollar little changed as US data keeps rate hike bets alive
Markets fairly calm overnight.
The New Zealand dollar was little changed overnight as US economic data broadly met expectations ahead of the country's Thanksgiving public holiday.
The kiwi traded at 65.70USc at 8am in Wellington, from 65.78USc at 5pm yesterday. The trade-weighted index was at 71.34 from 71.30 yesterday.
US data released ahead of Thursday's Thanksgiving and covering consumer spending, unemployment, durable goods orders, consumer confidence, and new home sales, while mixed, kept alive the prospect of the Federal Reserve raising interest rates at its meeting next month, analysts say.
"Ahead of the holiday, markets were fairly calm overnight," Bank of New Zealand senior market strategist Kymberly Martin says.
"US data delivery overnight was generally not too far from expectation, with insufficient surprise to provoke much in the way of currency response.
"For the rest of the week there is not a great deal on the domestic or offshore calendar that is likely to directly affect the currency. A period of consolidation into the weekend seems likely, in the absence of new geopolitical headlines.”
BNZ's Ms Martin says the kiwi faced resistance at 65.80USc.
In New Zealand today, October trade data scheduled for release at 10:45am is expected to show the trade balance at a deficit due to low commodity prices.
The New Zealand dollar advanced to 90.56Ac from 90.38Ac yesterday ahead of data on Australian capital spending today.
The local currency gained to 61.90 euro cents from 61.62 cents euro cents yesterday.
The European Central Bank is considering different policy such as whether to stagger charges on banks hoarding cash, or buy more debt, as part of efforts to stimulate the regional economy, Reuters reported citing officials it didn't name. The ECB is scheduled to review policy on December 3.
The kiwi slipped to 43.43 British pence from 43.54 pence yesterday, increased to 80.59 yen from 80.47 yen, and edged lower to 4.1967 yuan from 4.2019 yuan.
(BusinessDesk)
Tina Morrison
Thu, 26 Nov 2015
Thu, 26 Nov 2015
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NZ dollar little changed as US data keeps rate hike bets alive
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