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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news