New Zealand Stock Markets
The New Zealand dollar is heading for a 1.2 percent weekly fall as
the greenback comes back in favour after minutes from the US Federal
Reserve cemented the view it will lift interest rates at least three
times this year while New Zealand's central bank remains firmly on
hold.
The Kiwi fell to 73 US cents as at 5pm in Wellington from 73.88 cents last Friday in New York, and was little changed from 73.08 cents yesterday.
The trade-weighted index fell to 75.01 from 75.21 yesterday.
The Fed started tightening its ultra-loose policy at the end of 2015 after keeping rates on hold for almost a decade.
It raised interest rates three times in 2017 and investors expect it to tighten again in March, followed by two more hikes this year.
Retail sales volumes rose 1.7 percent in the final three months of 2017, on an adjusted basis for seasonal and price effects, from a revised 0.3 percent gain in the third quarter, Statistics New Zealand said.
Markets are still pricing the first New Zealand rate hike in May 2019.
The kiwi has strong resistance at 74.50 US cents and a weekly close below 73.30 US cents would suggest more short-term downside, he said.
Looking ahead, Hill said investors will be watching for Fed chair Jerome Powell's testimony next Wednesday in the US.
The kiwi fell to 59.33 euro cents from 59.52 cents yesterday. The local currency dipped to 52.33 British pence from 52.54 pence yesterday.
The New Zealand dollar slipped to 93.23 Australian cents from 93.72 cents yesterday and to 4.6268 Chinese yuan from 4.6388 yuan. It traded at 78.04 yen from 78.44 yen yesterday.
New Zealand's two-year swap rate was unchanged at 2.17 percent, while 10-year swaps fell 2 basis points to 3.24 percent.
The Kiwi fell to 73 US cents as at 5pm in Wellington from 73.88 cents last Friday in New York, and was little changed from 73.08 cents yesterday.
The trade-weighted index fell to 75.01 from 75.21 yesterday.
The Fed started tightening its ultra-loose policy at the end of 2015 after keeping rates on hold for almost a decade.
It raised interest rates three times in 2017 and investors expect it to tighten again in March, followed by two more hikes this year.
Retail sales volumes rose 1.7 percent in the final three months of 2017, on an adjusted basis for seasonal and price effects, from a revised 0.3 percent gain in the third quarter, Statistics New Zealand said.
Markets are still pricing the first New Zealand rate hike in May 2019.
The kiwi has strong resistance at 74.50 US cents and a weekly close below 73.30 US cents would suggest more short-term downside, he said.
Looking ahead, Hill said investors will be watching for Fed chair Jerome Powell's testimony next Wednesday in the US.
The kiwi fell to 59.33 euro cents from 59.52 cents yesterday. The local currency dipped to 52.33 British pence from 52.54 pence yesterday.
The New Zealand dollar slipped to 93.23 Australian cents from 93.72 cents yesterday and to 4.6268 Chinese yuan from 4.6388 yuan. It traded at 78.04 yen from 78.44 yen yesterday.
New Zealand's two-year swap rate was unchanged at 2.17 percent, while 10-year swaps fell 2 basis points to 3.24 percent.
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