Sharechat Logo

NZ dollar pares losses ahead of RBNZ rate decision

Tuesday 24th September 2019

Text too small?

The New Zealand dollar continued to recover as investors take positions ahead of tomorrow’s rate decision by the Reserve Bank of New Zealand. 

The kiwi was trading at 62.91 US cents at 8:10 am in Wellington from 62.74 cents at 5:05pm yesterday. The trade-weighted index was at 70.08 from 69.84.

Kiwibank senior portfolio manager Ross Weston said the market is extremely short the New Zealand dollar, betting that it will continue moving lower.

However, some investors will be pulling back a bit from that position on the off-chance the central bank is more hawkish than expected in tomorrow’s review.  

“You always get a portion of the market that’s a little bit more skittery,” he said.

The Reserve Bank is expected to keep rates on hold at 1 percent but signal more easing to come. All 16 economists polled by Bloomberg expect the rate to remain on hold this week. Market pricing points to around a 25 percent chance of a cut. Most economists, however, are expecting another rate cut in November.

“Some people will be taking chips off the table ahead of tomorrow, locking in some of their gains,” said Weston.

Ahead of the rate decision, Japan’s manufacturing purchasing managers index will garner attention today.  

The kiwi was trading at 92.90 Australian cents from 92.55, at 50.60 British pence from 50.25, at 57.24 euro cents from 56.90, at 67.61 yen from 67.57 and at 4.4772 Chinese yuan from 4.4617.

(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:

Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite
ANALYSIS: Why banks don't pass on full OCR cuts
NZ Europeans make up 80% of business leaders, survey shows
Zespri tries to whet American appetite for kiwifruit
MARKET CLOSE: NZ shares fall as Pushpay follows Aussie software firms lower

IRG See IRG research reports