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

 


NZ dollar at 4-month high vs. Aussie following RBNZ comments

NZ dollar at 4-month high vs. Aussie following RBNZ comments

Feb. 1 (BusinessDesk) - The New Zealand dollar rose to a four-month high against its Australian counterpart and gained against the greenback after a more upbeat assessment by the Reserve Bank yesterday stoked investors' appetite for the local currency.

The kiwi rose as high as 80.63 Australian cents and traded at 80.48 cents at 8am in Wellington from 80.31 cents yesterday. It climbed to 84.10 US cents from 83.67 cents yesterday.

Reserve Bank governor Graeme Wheeler is set to deliver a speech on improving New Zealand's economy today after holding the official cash rate at 2.5 percent and pointing at the nation's expected recovery over the coming year. The statement was interpreted by markets as more hawkish, meaning the bank is unlikely to cut interest rates, and increasing investors' appetite to invest in a stable economy.

"New Zealand is one of the few countries that have quite a positive outlook outside East Asia," said Imre Speizer, market strategist at Westpac Banking. "Outside Asian currencies and the kiwi it's hard to see where you'd want to go to make a risk-on currency trade."

The local currency was deemed to be fair value at about 83 US cents according to the Economist magazine's Big Mac index, which measures the average price of the McDonald's burger.

Australia's currency was knocked yesterday by Standard & Poor's warning the nation's economy faces a potential slow-down as the resources boom fades away.

"The kiwi does look promising, and against the Aussie dollar it looks more promising," Speizer said.

Investors will be looking at Chinese manufacturing figures and US employment data today, with local migration figures unlikely to attract much attention.

The kiwi dollar climbed to 76.81 yen at 8am in Wellington from 75.87 yen yesterday, and increased to 61.94 euro cents from 61.50 cents. It rose to 53.02 British Pence from 52.80 pence yesterday.

The trade-weighted index advanced to 75.58 from 75.06 yesterday.

(BusinessDesk

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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