Sharechat Logo

NZ dollar falls as inflation indicators awaited, volatility measure ebbs

Tuesday 13th February 2018

Text too small?

The New Zealand dollar fell ahead of inflation data in the UK and US and the Reserve Bank's survey of expectations tomorrow, with little indication there is much pressure on prices worldwide.

The kiwi declined to 72.44 US cents as at 8am in Wellington from 72.68 cents late yesterday. The trade-weighted index fell to 74.52 from 74.72.

Figures tonight may show UK core inflation was 2.6 percent year-on-year in the first quarter, up from 2.5 percent previously, while tomorrow night US data may show core inflation slowed to 1.7 percent from 1.8 percent. The RBNZ's survey of expectations, out tomorrow, may also indicate a subdued outlook for inflation after the central bank last week reiterated interest rates are on hold until at least the second half of 2019. 

"Offshore events are likely to hold sway with US CPI figures the key event this week," Con Williams, rural economist at ANZ Bank New Zealand, said in a report. "That said the RBNZ’s two-year inflation expectations survey tomorrow will also be watched to see if the central bank might need to take more action to move prices along."

Traders will watch for the Crown accounts today for the six months ended Dec. 31 and in Australia, the NAB business conditions survey for January.

Financial markets are more subdued than last week, with the Chicago Board Options Exchange Volatility Index (VIX) retreating to about 26 from a spike to about 40.90 at the end of last week.

The kiwi dollar fell to 52.38 British pence from 52.45 pence late yesterday after  Bank of England policymaker Gertjan Vlieghe said a further rise in British interest rates was likely to be needed, adding to hawkish comments from the Bank of England last week.

The kiwi dropped to 92.34 Australian cents from 92.76 cents yesterday and declined to 58.96 euro cents from 59.15 cents. It was little changed at 4.5804 yuan from 4.5810 yuan and fell to 78.71 yen from 79.02 yen.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar ekes out 0.1% weekly gain, treading water amid geopolitical turbulence
MARKET CLOSE: NZ shares up as Comvita, A2 rebound from weakness, Steel & Tube keeps dropping
NZ dollar ekes out 0.1% weekly gain, treading water amid geopolitical turbulence
NZ Meat Board chases higher returns from $70M of funds now held in term deposits
NZ industrial property offers ‘good returns’, analyst says
Top oil analyst slams 'errors and misrepresentations' in govt's offshore exploration ban
Augusta earnings fall as delayed fund pushes out fees, boosts costs
Stats NZ takes over property transfers data from LINZ, expects to paint fuller picture of market
Anzco Foods says annual pre-tax profit fell 90% on tough year for beef processing
Veritas' Morton to step down after Nomura deal announced

IRG See IRG research reports