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NZ dollar static after Fed minutes release

NZ NewswireNZ Newswire 12/10/2016 Paul McBeth

The New Zealand dollar was little changed as minutes to the September meeting of the Federal Open Market Committee showed US policymakers saw a rate hike as being a "close call".

The kiwi traded at 70.72 US cents at 8.30am in Wellington from 70.81 cents and the trade-weighted index was at 76.08 from 76.03.

The US dollar index, a measure of the greenback against a basket of currencies, edged up 0.3 per cent after minutes to the Federal Reserve's policy decision affirmed investors' expectations US interest rates will be raised in December.

Policymakers said a hike was needed "relatively soon" and that the September review was a "close call". The greenback has been rallying on the expectation rates will have to be increased this year as the world's biggest economy stays in good heart.

"The NZD maintained its downward trend as the USD held onto gains against most comers. It isn't clear what would turn this around meaningfully any time soon," ANZ's Sharon Zollner said.

Local data showed Auckland's property market came off the boil in September as house price inflation slowed and the volume of turnover declined and other data due out includes September food prices, manufacturing activity, and the government's 2016 accounts.

The local currency rose to 57.82 British pence from 57.55 pence, edged up to 64.17 euro cents from 64.06 cents, was little changed at 93.38 Australian cents from 93.42 cents, fell to 4.7496 Chinese yuan from 4.7568 yuan and gained to 73.68 yen from 73.24 yen.

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