NZ dollar static in shadow of US rate hike

  • 11/08/2015
NZ dollar static in shadow of US rate hike

By Tina Morrison

The New Zealand dollar consolidated overnight as comments from Federal Reserve officials kept expectations intact for a rate hike next month.

The kiwi was little changed at 66.09 US cents at 8am in Wellington, from 66.10 cents at 5pm yesterday. The trade-weighted index slipped to 70.36 from 70.45.

In the US, comments from Fed officials appeared to reiterate the possibility of a rate hike at the Fed's next two-day meeting on September 16-17.

Atlanta Fed president Dennis Lockhart said he was "very disposed" to a September rate hike, and Fed vice chairman Stanley Fischer highlighted low inflation.

"Statements from Fed officials overnight seem to be consistent with the message that the market should expect some action from the Fed at the September meeting," said Bancorp Treasury Services' Peter Cavanaugh.

"No surprises is good, it can be boring but it's actually a welcome break from some of the volatility that we've seen in recent weeks."

Mr Cavanaugh said the kiwi was in a consolidation phase with little new data.

"It's one of those occasional quiet nights where the markets had a chance to catch their breath," he said.

In New Zealand, electronic card spending data for July is scheduled for release.

The New Zealand dollar slipped to 89.17 Australian cents from 89.29 cents ahead of a report on Australian business confidence.

The local currency fell to 59.98 euro cents from 60.23 cents ahead of a report on German business sentiment, declined to 42.40 British pence from 42.67 pence and increased to 82.33 yen from 82.22 yen.

NZN

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