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

 

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news