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

 


NZ dollar extends gain as Aussie growth buoys investors

NZ dollar extends gain as Australian growth keeps investors upbeat

By Paul McBeth

March 6 (BusinessDesk) - The New Zealand dollar extended gains through the local session after Australian growth renewed investors' interest in the trans-Tasman currencies after rising dairy prices and strong US equity markets sparked off an earlier rally.

The kiwi rose to 83.28 US cents at 5pm in Wellington from 83.18 cents at 8.30am and 82.92 cents yesterday. The trade-weighted index advanced to 76.32 from 76.12.

Australian gross domestic product grew 0.6 percent in the last three months of 2012 from the September quarter, which was also revised upwards, the Bureau of Statistics announced. The prior period was welcomed by investors who were in a good mood after the Dow Jones Industrial Average closed at a record high, and as drought in New Zealand pushed dairy prices up 10 percent at the latest online auction.

"We were swamped by other good news - it's hard to say how much impact dairy had, though such a big jump did show some reaction (in the kiwi)," said Imre Speizer, market strategist at Westpac Banking in Auckland. "People have forgotten about Italy and (the US fiscal) sequester for now."

Speizer said the currency may trade between 82.60 US cents and 83.50 cents

Local dairy prices may continue to rise after the government extended its drought-zone to cover most of New Zealand's North Island. The arid conditions prompted Fonterra Cooperative Group to lower its forecast milk collection to 1 percent growth for the season.

Government figures showed the volume of building activity grew 1.8 percent in the December quarter, slowing from a rapid pace in the three months ended Sept. 30. Construction is expected to provide the major stimulus to New Zealand's economy in coming years as the Canterbury rebuild gathers pace, though today's figures showed activity around the country was relatively constant.

The local currency rose to 77.58 yen from 77.24 yen yesterday, was little changed at 80.91 Australian cents from 81 cents. It increased to 63.75 euro cents from 63.62 cents yesterday and advanced to 55 British pence from 54.78 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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