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

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news