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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news