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.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news