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

 


Benign CPI causes AUD to slide


Benign CPI causes AUD to slide

By Tim Waterer (Senior Trader, CMC Markets)

The CPI data today may not have gone so far as to determine the exact course and timeline of interest rates over coming months however it has saved the RBA the headache of balancing slowing growth with stubborn price pressures. Today’s low CPI print when viewed in the context of the soft labour market result last week makes the case for an RBA rate cut very justifiable, but it falls short of making potential monetary easing in February a slam dunk case. The improving global outlook perhaps eliminates some of the urgency for the RBA to cut rates again however the benign CPI undoubtedly provided more opportunity to ease if the central bank so desires.

As expected, the Australian Dollar did not take too kindly to the low CPI print with the currency losing around a third of a cent on the increased chance of forthcoming RBA rate cuts. The AUDUSD had been above 1.0560, before slipping below 1.0530. It was far from a significant sell-off in the AUD today however and the improving global outlook and rising commodity prices allowed the AUD to absorb the low inflation reading. Despite the CPI data today, 1.0620 remains a viable short term target for the AUD and much of this is down to sentiment for 2013 continuing its upward trajectory.

The ASX200 made another play for the 4800 level today courtesy of positive performances by key stocks in the materials and financial sectors. Again it was a solid if not spectacular day on the market which is a theme that seems to be re-occurring so far in 2013. BHP results were warmly received by traders however this was offset by RIO weakness and this seemed to constrain the local bourse from having a solid breakout above 4800 today. But overall it was a case of ‘steady as she goes’ with the ASX200 again edging higher.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news