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Kiwi little changed ahead of Fed meeting

NZ Newswire logoNZ Newswire 13/03/2017 Rebecca Howard

The New Zealand dollar was little changed in a week that's expected to include an interest rate hike from the Federal Reserve and in the domestic market will include economic growth figures for the fourth quarter.

The kiwi dollar traded at US69.35c from 69.28c in New York on Friday.

"It's seen a very small rally, on the back of what looks like a lower US dollar index," said Ross Weston, FX trader at Kiwibank.

He expects the kiwi to trade in a range of US69c to 70c ahead of news events this week. "All the big events are Thursday, and that's what the markets are focused on," he said.

Markets are widely expecting the US Federal Reserve to lift rates this Thursday and will also be watching for the Dutch election results mid-week, a budget release from US President Donald Trump and Australian jobs data, said Mr Weston.

"It's going to be pretty quiet until then. Other than that we will just be at the mercy of the big dollar," he said.

Domestically the fourth quarter balance of payments and the gross domestic product data will be in focus.

Bank of New Zealand head of research Stephen Toplis said the GDP is likely to come in much weaker than the central bank is forecasting, which "may force the RBNZ into a rethink of sorts".

The kiwi dollar traded at 64.83 euro cents from 65.16c on Friday.

The kiwi traded at A91.61c from 91.74c in New York on Friday. It was at 4.7900 yuan from 4.7852 yuan and 79.61 yen from 79.45 yen. It was at 56.94 British pence from 56.88 pence last week.

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