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

 


NZ dollar firm as focus turns to Australian CPI data

NZ dollar firm as focus turns to Australian CPI data

Jan. 23 (BusinessDesk) – The New Zealand dollar is firmer ahead of Australian inflation data and after the Bank of Japan came out with an open-ended stimulus programme.

The kiwi was at 84.04 US cents at 8am, up from 83.99 cents at 5pm yesterday.

It fell to 74.51 yen, from 75.17 yen at 5.20pm on Tuesday after the Bank of Japan disclosed monetary policy initiatives.

The yen appreciated overnight, turning around a recent trend of weakness.

The kiwi would have fallen more on the yen cross if it had not been firm against the US dollar.

“The Bank of Japan delivered all the things expected but the negative was that they said that the asset purchases don’t start to January next year. The timing was a disappointment,” Imre Speizer, senior market strategist at Westpac said.

The central bank has been stimulating the Japanese economy by purchasing assets in in dribs and drabs.

“Now they have outlined a timetable and it continues forever until the economy improves -- and that is a powerful thing -- but we don’t get it for another year,” Speizer said.

The market is now focused on a core measure of inflation in the December quarter Australian consumers price index report, due out today.

“We are expecting a stronger number than market. Maybe people jumped on that theme,” Mr Speizer said.

The market expectation is for the core measure to rise by 0.65 percent in the December quarter.

A strong core inflation number would dampen expectations for a rate cut in Australia in February.

The kiwi was at 79.53 Australian cents at 8am, down from 79.79 cents at 5pm on Tuesday.

It was at 63.09 euro from 62.93, and 52.94 British pence from 52.99.

The trade-weighted index was at 75.41 from 75.34

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news