NZ dollar pares Fed gains after local GDP softer-than-expect

Reuters

"While we wouldn't want to overplay how weak the data was (amid signs of temporary weather distortions), they do nonetheless underscore the Reserve Bank's view that time is on its side, especially given the myriad of global uncertainties and recent moves higher in retail interest rates, which is a de facto tightening", said David Croy, senior rates strategist at ANZ Bank New Zealand.

LONDON, March 14 The dollar climbed on Tuesday ahead of an expected interest rate rise by the U.S. Federal Reserve, as political risks from Dutch and French elections to Britain's exit from the EU weighed on European currencies. While the Federal Reserve "is the first cab off the rank" markets will also be watching for the Bank of Japan, Bank of England, Swiss National Bank, local GDP data and Australian labour data and the Dutch elections.

United States inflation data overnight cemented rate hike expectations.

Oil prices rebounded after the International Energy Agency said in its latest monthly report that OPEC crude producing nations were complying with a landmark deal to curb a global supply glut. While a rate increase from the USA central bank was largely anticipated, whether policymakers would signal a more aggressive pace of monetary tightening remained less certain.

Oil futures extended gains after climbing for the first time in a week on Wednesday on data showing a surprise drawdown in United States crude inventories.

The kiwi dollar traded at 64.96 euro cents from 64.83 cents yesterday.

In late trading, the dollar index fell 0.4 percent to 100.37.


The S&P 500 Index jumped by the most in two weeks while contracts on Australian, Korean and Taiwanese stock indexes pointed higher.

USA long-dated and benchmark Treasury yields edged lower on Tuesday after a drop in oil prices was viewed as a deflationary sign, but the drop in yields was limited as investors awaited the Federal Reserve's policy statement on Wednesday. It touched its lowest level in 3 1/2 months early this week on concerns about a supply glut in the US, but data on Wednesday showing a small decline in stockpiles there helped lift prices. Although inflation is "close" to the Fed's 2-percent target, it noted that goal was "symmetric", indicating a possible willingness to allow prices to rise at a slightly faster pace.

Indexes: The German DAX 30 index was off 2 points at 11,987.84.

The 10-year yield was at 2.5402 percent, from its last close of 2.524.

USA crude climbed 0.2 percent to $48.84 a barrel, set to end the week 0.7 percent higher. Benchmark Brent settled up 1.8 percent to $51.81 a barrel. It is down nearly 11 percent since March 3.

"Lower rates, higher equities and a lower dollar all point to this being interpreted as more dovish than what was expected", said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Seoul advanced 0.8 percent, Sydney ticked up 0.2 percent and Singapore was 0.8 percent higher, while there were also big gains in Wellington, Taipei, Jakarta and Manila.

Related News:

  • Tesla Raises $1.2B, More Than Planned Ahead Of Model 3 Launch

    Tesla Raises $1.2B, More Than Planned Ahead Of Model 3 Launch

    Tesla CEO Elon Musk has attempted to assuage investor fears that the Model 3 will not enter production on schedule. The underwriters increased the amount of equity and convertible notes to $1.2 billion.
    Clichy: Man City players to blame for European exit

    Clichy: Man City players to blame for European exit

    But it was not enough, and Monaco's players rushed to the centre circle to mob each other as the final whistle blew. Against a Monaco defense which has been poor all season, Agüero will feel he should have gotten at least one goal.

    Jeff Sessions: Marijuana is "slightly less awful" than heroin

    Whenever there's a change in presidential administration, he said, "I think it would be unwise not to be ready". Attorney Andrew Luger's office in January and was still in contact with people there.
  • Issa Hayatou loses CAF presidency, Ahmad wins

    Issa Hayatou loses CAF presidency, Ahmad wins

    Pinnick won the West African Zone B seat into the Caf executive committee by defeating Benin Republic's Anjorin Moucharafou. He says he will modernise the body and make it more transparent, although his own transparency has once been questioned.
    Study finds cholesterol-lowering drug may prevent heart disease

    Study finds cholesterol-lowering drug may prevent heart disease

    The Repatha study results are being presented and discussed today at the American College of Cardiology annual meeting. The researchers hope that with more time, they can show Repatha can prevent early deaths. "I don't think so".

    Trump administration says hiring standards won't lessen for Border Patrol

    He also wants to boost immigration courts by $80 million to pay for 75 additional teams of judges. Congress needs to pass the appropriations bills by April 28 to keep the government open.
  • Antonio Conte rubbishes rumors of discontent with Chelsea Board

    Antonio Conte rubbishes rumors of discontent with Chelsea Board

    Attack: We could see Conte freshen things up in attack with Pedro getting a recall after being dropped to the bench for the FA Cup quarter final clash on Monday.

    Tillerson says State Department spending 'simply not sustainable'

    Chinese President Xi Jinping is due to visit the United States in April, presumably meeting Trump for the first time. Tillerson's delegation "would be flying on a smaller plane than normal and that press access would be limited".
    Justice Department charges Russian spies, hackers in Yahoo breach

    Justice Department charges Russian spies, hackers in Yahoo breach

    It comes as federal authorities investigate Russian interference through hacking in the 2016 presidential election. After announcing the indictments USA will put out another official request for their extradition, he said.
  • East Antrim MLA extends invite for 'Workshy William' to visit Carrickfergus

    East Antrim MLA extends invite for 'Workshy William' to visit Carrickfergus

    The royal couple will be travelling to Paris without their children, three-year-old George and one-year-old Charlotte. But of course, a source defend the prince stating that William was just having a real good time with his friends.
    Karanka walked away to save Middlesbrough says owner

    Karanka walked away to save Middlesbrough says owner

    His departure came three years and four months into his reign and followed lengthy talks with chairman Steve Gibson . Boro are winless in their last 10 Premier League games and are the league's lowest scorers with just 19 goals.
    Trump To Review Feasibility Of US Emissions Laws

    Trump To Review Feasibility Of US Emissions Laws

    There are other disputes on the horizon between California and the Trump administration, but this is the first big one. A senior White House official said Tuesday that the administration wants to negotiate one national standard.


Most liked

Geno Smith comes to terms with Giants
The Giants had Smith in for a visit over the weekend, and the Johnson signing initially seemed to indicate that door had closed. Taking a flier on him is arguably a better decision than overspending in what is a lackluster crop of free-agent quarterbacks.

Asian markets end lower
Shares in Asia fell early on Wednesday with a widely expected hike in US interest rates later in the day weighing on sentiment. The Netherlands has its own election this week, where politicians have also railed against the European Union and immigrants.

How Harry Kane's Injury Changes Tottenham Hotspur's Playing Style
Spurs face a similarly uphill task, with Antonio Conte's Blues moving 10 points clear in the race to lift the Premier League. While Spurs beat City without Kane in October, they failed to win any of their following six matches in his absence.

Only One Reporter Traveling With Tillerson on Asia Trip
In 2014, Skatell told The New York Times he wanted to start a site after observing a gap in reaching "a more mainstream centre-right audience".

Weekly Jobless Claims Fell Last Week to 241K
Yellen noted that jobs have gained and the unemployment rate has seen continued declines in the first two months of 2017. The number of employed residents dropped 1,300 to 36,900, and the number of unemployed residents fell 300 to 2,500.

Google Increases JPEG Compression by 35% Without Loss in Image Quality
This code is supposed to close the difference between the standard JPEG psychovisual modeling and the one that's used by Guetzli . Guetzli is the product of Google Research Europe, and has been released under the Apache open source license .

Mount Etna explosion caught on camera
In the video rubble can be seen being thrown into the air as people try to distance themselves from the growing steam cloud. Ms Morelle said everyone on the mountain was quickly evacuated by rescue teams and guides who were "brilliant".

Rex Tillerson 'used email alias' at Exxon to talk climate change
Wayne is Tillerson's middle name and "Tracker" is likely a reference to his past involvement in the Boy Scouts of America. After a four-decade career at the company, Tillerson, 64, left this year to become President Trump's secretary of state.

US Mulls Sending 1000 More Troops into Syria
Turkey has declared the YPG a terrorist organization and considers it to be linked to its own home-grown Kurdish insurgency. Russian Federation is not likely to stay out of the push on Raqqa, either.

Penn West Petroleum Ltd. (NYSE:PWE) Gapping Down -2.42%
Heading into the earnings release, covering analysts have a consensus target price of $2.22 on Penn West Petroleum Ltd. shares. The Return on Investment (ROI) is at -50.6% while it's Return on Equity (ROE) value stands at -75.6%.

A quick look at Princeton-Notre Dame in the NCAA Tournament
The slipper didn't fit for the Princeton Tigers . "In a situation like that, you're trying to do everything you can to claw back". Irish coach Mike Brey after the game, "We weren't in the best of offensive rhythm where we had to win it with our defense".

I made correct review calls, DRS was hacked like EVMs: Virat Kohli
The meeting has been agreed to by the teams' respective boards amid warnings the series risked degenerating into anarchy. I wouldn't say that we are trying to push anything any further but we just need to focus on the two games that are left.

Malcolm Turnbull says he's got a guarantee on gas supply
Introduce an Energy Security Target to ensure greater use of clean, secure energy generated in South Australia. This element will represent the bulk of the cost of the plan ($360 million).

YouTube Cooking Star Auntie Fee On Life Support After Massive Heart Attack!
After her first viral video, Auntie Fee even went on to have special guests join her in the kitchen. An initial report from TMZ stated that Odell had passed away after being rushed to the hospital.

Pandora launches premium music service
Sorrell added: "The fundamental issue is that you [Google] have to take responsibility for this as a media company". Open Pandora Premium and you'll see the familiar look and feel that has always made Pandora so easy to use.