You are using an older browser version. Please use a supported version for the best MSN experience.

Kiwi steady ahead of inflation update

NZ NewswireNZ Newswire 17/07/2016 Paul McBeth
© Bloomberg

The New Zealand dollar is little changed from the New York close as investors wait for local inflation data and an unexpected economic update from the Reserve Bank later this week.

The kiwi traded at US71.21 cents at 8am on Monday from US71.09c at the New York close on Friday, down from US71.54c at 5pm on Friday in Wellington.

The trade-weighted index was little changed at 76.11 from 76.13.

The second quarter consumers price index data on Monday will be closely watched ahead of the Reserve Bank's economic assessment on Thursday, where governor Graeme Wheeler is expected to voice his discomfort with the strength of the kiwi dollar.

Mr Wheeler has had to contend with rising house prices putting pressure on the nation's financial stability against the strength of the currency in limiting imported inflation.

"Although our pick for today's CPI release (0.6 per cent year on year) is marginally above consensus it is aligned with the RBNZ's published forecasts," BNZ senior market strategist Kymberly Martin said in a note.

"It would take a much stronger print, in our view, to assuage the RBNZ's fears about the impact that current NZ TWI strength will have on its goal of returning CPI to its 2 per cent target over the medium-term."

The US dollar index, a measure of the greenback against a basket of currencies, rose after US retail sales and industrial production figures beat expectations, raising estimates for economic growth.

On Monday morning, the kiwi rose to 75.02 yen from 74.52 yen on Friday in New York and increased to 4.7621 Chinese yuan from 4.7534 yuan. It was little changed at 93.70 Australian cents from A93.80c and traded at 64.43 euro cents from 64.40 cents. The local currency was almost unchanged at 53.86 British pence from 53.88p.

image beaconimage beaconimage beacon