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

 


NZ dollar falls to 2-month low on Australian data

NZ dollar falls to 2-month low as Australian data knobbles nervy investors

By Paul McBeth

March 4 (BusinessDesk) - The New Zealand dollar fell to a two-month low as weaker-than-expected Australian data sapped already strained investors' appetite for higher yields, with Italy's election keeping people uncertain about Europe's future and the US Federal government preparing to impose dramatic budget cuts.

The kiwi fell as low as 82.08 US cents, its lowest level this year, and traded at 82.10 cents at 5pm in Wellington from 82.29 cents at 8am and 82.48 cents at the close of trading in New York last week. The trade-weighted index declined to 75.57 from 75.88.

The local currency followed its trans-Tasman cousin lower after Australian government figures showed a second straight decline in building permits, and as Chinese data indicated the slowest pace of expansion in the most populous nation's manufacturing sector.

"The kiwi's drifted lower all day, pulled down by a weaker Aussie that reflected the Australian economic data," said Joe Capurso, currency strategist at Commonwealth Bank of Australia in Sydney. "The kiwi's still at a pretty strong level - the story for the week is probably going to be a little bit of a strong US dollar."

Risk sensitive currencies have fallen out of vogue in the past week after the lack of any clear winner in the Italian election reignited fears about Europe's ability to cope with sovereign debt issues, and as the US faces up to fall-out from policymakers' inability to compromise over spending cuts, tax hikes and its debt ceiling.

New Zealand's locally produced raw materials showed a seventh monthly gain last month, according to ANZ data, though the strength of the currency meant it was little changed in kiwi dollar terms.

The local currency will probably fall this week due to the heightened global uncertainty, according to five strategists surveyed by BusinessDesk.

The kiwi was little changed at 80.82 Australian cents from 80.80 cents last week ahead of the Reserve Bank of Australia's policy review tomorrow. The RBA isn't expected to cut the target cash rate, though investors will be looking for any movement away from the easing bias after capital expenditure figures last week weren't as dire as feared.

New Zealand's currency fell to 76.64 yen from 77.22 yen last week, and decline to 63.03 euro cents from 63.34 cents. It decreased to 54.59 British pence from 54.82 pence on Friday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news