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NZ dollar rangebound; focus on domestic GDP and US Federal Reserve

Monday 18th March 2019

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The New Zealand dollar stuck to a tight range ahead of domestic gross domestic product data later this week and the upcoming Federal Open Market Committee meeting.

The kiwi was trading at 68.44 US cents at 8am in Wellington from 68.43 late Friday in New York; the trade-weighted index was at 74.19 from 74.17. 

Mixed US data overnight Friday, with US industrial production and manufacturing output weaker than expected but consumer confidence better than forecast, helped keep the Kiwi rangebound. 

Domestically, this week's fourth-quarter gross domestic product data will be in focus, with economists expecting the data to show the economy grew 0.6 percent during the quarter.

The global focus for financial markets will be the Fed's latest monetary policy statement and economic forecasts due early Thursday New Zealand time.

"Despite the market pricing no change at the upcoming FOMC meeting, the statement and press conference will be of great interest," said ANZ FX/rates strategist Sandeep Parekh. "With US data teetering, not to mention warnings over global economic growth, the Fed appears to have pulled the handbrake on its hiking cycle at the right moment." 

He said markets will also be watching for any further news on Brexit with the UK parliament expected to vote again this week. 

The kiwi was at 96.57 Australian cents from 96.48 in New York. It was trading at 51.48 British pence from 51.49, unchanged at  60.43 euro cents, at 76.32 yen from 76.28 and at 4.5943 Chinese yuan from 4.5936. 

(BusinessDesk)

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