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Kiwi steady ahead of big week in US

NZ Newswire logoNZ Newswire 26/02/2017 Jonathan Underhill

The New Zealand dollar has started the week little changed, remaining in the range of just over US1 cent that has kept it contained for more than two weeks.

US President Donald Trump's address before Congress on Tuesday and a talk by Federal Reserve Chair Janet Yellen on Friday are seen as the major events this week.

The kiwi traded at US71.90c as at 8am on Monday in Wellington, from US71.95c in late New York trading on Friday and from US72.18c in Asia at the end of last week.

The trade-weighted index fell to 78.23 from 78.33 in New York and 78.40 in Wellington at the end of last week.

Financial markets will be hoping for an update on Mr Trump's policy plans when he addresses Congress, after the impetus from the promise of tax cuts ran out of steam, while Dr Yellen may help investors understand the Fed's thinking about interest rate hikes.

In New Zealand, traders on Monday will be watching migration data for January for any sign the inflow that's helped underpin economic growth is starting to abate.

"Global factors are holding sway over immediate NZD direction at present," said ANZ senior economist Philip Borkin.

"This week, all eyes will be on respective Donald Trump and Janet Yellen speeches for clues on fiscal plans and the odds of Fed rate hikes."

On Monday morning, the kiwi traded at A93.70 cents from A93.74c in New York on Friday and A93.55c at the close of trading in Wellington at the end of last week.

It traded at 57.61 British pence from 57.72p in New York at the end of last week and was at 68.07 euro cents from 68.14c. The kiwi was at 80.67 yen from 80.61 yen and fell to 4.9383 yuan from 4.9404 yuan.

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