Kiwi dollar gains amid talks of staged US tax cuts
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The New Zealand dollar rose in a week that features policy reviews from the Bank of Japan, Federal Reserve and Bank of England as reports of staged tax cuts in the US weighed on the greenback, BusinessDesk reported.
The kiwi gained to 68.72 US cents as at 8am in Wellington from 68.58 cents late yesterday. The trade-weighted index rose to 72.92 from 72.78 yesterday.
In New Zealand, traders will be watching for September building permits and October business confidence, which may indicate corporate views about the new coalition government. But offshore events are likely to dominate trading.
As well as central bank statements, US President Donald Trump is to announce his choice for new Fed chair this week while US payrolls data on Friday is expected to show a bounce back after a hurricane-related dip.
Meanwhile, markets are keeping an eye on the White House after two ex-Trump aides were charged in a Russia probe.
ANZ NZ Senior Economist Sharon Zollner said: "While a little stronger overnight, in large part due to a modestly weaker USD, the kiwi is ultimately in consolidation mode right now, and that is something that is likely to persist for a while yet.
"Today’s local business confidence figures will be watched for any impact of political uncertainty on sentiment. However, it is ultimately a week where US developments will hold sway," Zollner added.
Also, out later today are China's manufacturing and non-manufacturing PMI reports for October and Japanese industrial production for September. The Bank of Japan is expected to maintain its accommodative monetary policy settings.
The kiwi traded at 52.02 British pence from 52.12 pence yesterday and edged up to 59.04 euro cents from 58.96 cents. It rose to 89.46 Australian cents from 89.17 cents, increased to 4.5671 yuan from 4.5506 yuan and traded at 77.74 yen from 77.79 yen.
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Dollar at 5-month low
Dollar falls on Labour news
The kiwi gained to 68.72 US cents as at 8am in Wellington from 68.58 cents late yesterday. The trade-weighted index rose to 72.92 from 72.78 yesterday.
In New Zealand, traders will be watching for September building permits and October business confidence, which may indicate corporate views about the new coalition government. But offshore events are likely to dominate trading.
As well as central bank statements, US President Donald Trump is to announce his choice for new Fed chair this week while US payrolls data on Friday is expected to show a bounce back after a hurricane-related dip.
Meanwhile, markets are keeping an eye on the White House after two ex-Trump aides were charged in a Russia probe.
ANZ NZ Senior Economist Sharon Zollner said: "While a little stronger overnight, in large part due to a modestly weaker USD, the kiwi is ultimately in consolidation mode right now, and that is something that is likely to persist for a while yet.
"Today’s local business confidence figures will be watched for any impact of political uncertainty on sentiment. However, it is ultimately a week where US developments will hold sway," Zollner added.
Also, out later today are China's manufacturing and non-manufacturing PMI reports for October and Japanese industrial production for September. The Bank of Japan is expected to maintain its accommodative monetary policy settings.
The kiwi traded at 52.02 British pence from 52.12 pence yesterday and edged up to 59.04 euro cents from 58.96 cents. It rose to 89.46 Australian cents from 89.17 cents, increased to 4.5671 yuan from 4.5506 yuan and traded at 77.74 yen from 77.79 yen.
Related stories:
Dollar at 5-month low
Dollar falls on Labour news
