Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar gains vs. Oz dollar as business investment slows

NZ dollar gains vs. Australian dollar as business investment slows across the Tasman

By Paul McBeth

Nov. 29 (BusinessDesk) - The New Zealand dollar gained against its Australian counterpart after official figures showed business investment is slowing in Australia, which could be a key factor in its central bank interest rate decision next week.

The kiwi rose to 78.75 Australian cents from 78.56 cents yesterday. It traded at 82.41 US cents at 5pm in Wellington from 82.34 cents at 8.30am, and up from 82.14 cents yesterday.

Australian capital spending advanced 2.8 percent from the second quarter, when it rose 3.4 percent, the Bureau of Statistics said in Sydney today. Still, signs of a slowing Australian resources boom have investors nervous the Reserve Bank of Australia will cut interest rates next week.

Traders are pricing a 68 percent chance the 3.25 percent target cash rate will be trimmed, according to the Overnight Index Swap curve. New Zealand's central bank, which also meets next week, is being given a 14 percent chance of a cut to its 2.5 percent official cash rate, meaning Australia's yield advantage will probably narrow.

"The Aussie capex data was a bit mixed, but doesn't seem to have done anything to upset things," said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. "The kiwi was lifting through the morning (against the Australian dollar), and since then (the capex data) it has outperformed."

Risk-sensitive currencies got a lift from upbeat comments by US House of Representatives Speaker John Boehner, who said he was optimistic policymakers could "avert this crisis sooner rather than later," referring to the US$607 billion of automatic tax increases and spending cuts pencilled in for Jan. 1.

The kiwi dollar might also have got a fillip from investors in the Fonterra Cooperative Group's shareholder fund float. About 42 percent of the $525 million initial public offer went to international investors who will have to settle their accounts after getting their allocation yesterday. The units are set to begin trading tomorrow.

The trade-weighted index advanced to 73.74 from 73.46. The currency rose to 67.65 yen from 67.22 yen yesterday, and increased to 51.45 British pence from 51.30 pence. It advanced to 63.63 euro cents from 63.50 cents yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news