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

 


NZ dollar tempers gains on RBNZ after S&P eyes slowing Oz

NZ dollar tempers gains on RBNZ after S&P links slowing Australian economy to mining

By Paul McBeth

Jan. 31 (BusinessDesk) - The New Zealand dollar pared gains from a more optimistic Reserve Bank review today after rating agency Standard & Poor's joined the dots between a slowing Australian economy and the possible peak of the nation's mining boom.

The kiwi dollar rose to 83.47 US cents at 5pm in Wellington from 83.11 cents just before the RBNZ announcement, but was down from as high as 83.67 cents today and 83.71 yesterday. The kiwi climbed to 80.31 Australian cents from 79.94 cents yesterday.

Central bank governor Graeme Wheeler held the official cash rate at 2.5 percent as expected, flagging a recovery in New Zealand's economy over the coming year and a reduction in spare capacity which will increase inflation. The local currency rallied on the news, even after Wheeler called it overvalued and Reserve Bank figures showed the bank had started selling down its New Zealand dollar holdings.

"The statement was more hawkish than many were expecting - reading between the lines the bank is pretty happy with the recovery playing out," said Mike Jones, currency strategist at Bank of New Zealand."

Those gains were tempered by a drop in the Australian dollar after Standard & Poor's said the slowing resources sector across the Tasman was weighing on the 'lucky country's' economy. The Australian dollar dropped to US$1.0389 at 5pm in Wellington from US$1.0467 yesterday.

"S&P came out and said the obvious really," said Joe Capurso, currency strategist at Commonwealth Bank of Australia in Sydney. "That goes to show how much of a slow day it is."

Markets will be watching US employment numbers tomorrow after figures showed growth unexpectedly stalled in the world's biggest economy in the last three months of 2011.

The kiwi fell to 75.87 yen at 5pm in Wellington from 76.04 yen yesterday, and increased to 61.50 euro cents from 61.29 cents. It fell to 52.80 British pence from 53.13 pence yesterday.

The trade-weighted index declined to 75.06 from 75.29.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news