22 Jul 2014

NZ dollar and shares little changed

5:59 pm on 22 July 2014

The New Zealand dollar is little changed against the currencies of the country's major trading partners.

ASB Bank head of external foreign exchange sales Tim Kelleher said the kiwi could see some action overnight with the release of key inflation data in the United States.

He said if the US Consumer Price Index comes in stronger than forecast then there would be likely to be some strong reaction from the US dollar with forecasters expecting that the Federal Reserve may have to react sooner rather than later.

Mr Kelleher said the kiwi should still hold above the 86 to 86.5 cent level ahead of Thursday when the Reserve Bank is expected to hike the official cash rate for the fourth time this year.

At about 5pm on Tuesday, the kiwi was trading at 86.76 US cents, 92.42 Australian cents , 50.79 British pence, 0.6414 euro, 88.03 yen and 5.38 renminbi.

NZ shares little changed

New Zealand shares were also little changed on Tuesday, the benchmark Top 50 Index rose 7 points to 5134.

Craigs Investment Partners head of wealth research Mark Lister said the market was little changed overall, as investors were also awaiting news from the Reserve Bank on Thursday.

He said broadly the market has been a bit flat and the market is in something of a holding pattern ahead of the official cash rate announcement on Thursday.

Mr Lister said A2 Milk has performed strongly after announcing it had regulatory approval from China for its infant formula. He said Oceana Gold also performed quite well in line with global uncertainty in the gold price.

Mr Lister said a few other stocks like Kathmandu and The Warehouse rebounded having been quite weak of late.

A2 Milk rose 4 cents to 65 cents. Oceana Gold performed well, rising 12 cents to $3.85.

Among retail stocks, The Warehouse rose 8 cents to $3.11, while Kathmandu rose 4 cents to $3.39.

Weaker stocks included Diligent, down 11 cents to $4.04.