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

 


NZ dollar climbs near 18-month high vs. Aussie

NZ dollar climbs near 18-month high vs. Aussie as trans-Tasman fortunes turn

By Paul McBeth

Feb. 1 (BusinessDesk) - The New Zealand dollar climbed near an 18-month high against its Australian counterpart as the fortunes for the neighbours pall, while looking rosier on this side of the Tasman.

The kiwi climbed as high as 80.93 Australian cents, the highest since August 2011, and traded at 80.81 cents at 5pm in Wellington from 80.31 cents yesterday. The currency was unchanged at 84.10 cents from 8am and up from 83.67 cents yesterday.

New Zealand is becoming a more attractive destination for investors looking for higher yields, with the Reserve Bank looking more likely to hike or maintain rates at current levels, while its Australian counterpart has an easing bias. That comes as the local economy is set to get a boost from the looming Canterbury rebuild, while Australia's mining boom continues to come off its peak. The yield on New Zealand's 10-year government bonds is almost 26 basis points higher than its Australian equivalent at 3.77 percent.

"I really do think the Christchurch rebuild will lead to a rise in rates quicker than other people do," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. The kiwi/Australian cross is "undervalued" he said. "I see it heading up towards 85 (Australian) cents," though that's not ASB's official view, he said.

The Australian dollar also took a hit from slightly weaker Chinese manufacturing figures than expected, with the nation's economy more closely linked than New Zealand to China's fortunes. The Australian dollar fell to US$1.0401 at 5pm in Wellington from US$1.0442 before the announcement.

The kiwi's rally comes after the Reserve Bank held the official cash rate at 2.5 percent yesterday, and a speech by governor Graeme Wheeler today, which again played down the bank's ability to influence the currency in a low interest rate environment.

Figures published this week showed the Reserve Bank sold a net $199 million of kiwi dollars in December, which has been seen as the RBNZ taking a punt on the currency running out of steam.

Investors largely ignored flat migration numbers for December, which showed a slowing pace of annual net migration out of New Zealand, and will be looking at US employment figures out on Friday in Washington.

The kiwi dollar climbed to 77.21 yen at 5pm in Wellington from 75.87 yen yesterday, and increased to 61.78 euro cents from 61.50 cents. It rose to 53.01 British Pence from 52.80 pence yesterday.

The trade-weighted index advanced to 75.64 from 75.06 yesterday. The TWI rose as high as 75.82, and is trading near the 77.17 peak in mid-2007, when the Reserve Bank last intervened.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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