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

 


NZ dollar heads for 1.4 percent weekly gain vs. Aussie

NZ dollar heads for 1.4 percent weekly gain vs. A$ on divergent economies; US jobs data loom

By Paul McBeth

Dec. 6 (BusinessDesk) - The New Zealand dollar is heading for a 1.4 percent weekly gain against its Australian counterpart as the divergence between the neighbouring economies becomes clearer, ahead of next week’s Reserve Bank of New Zealand policy review.

The kiwi rose to 90.45 Australian cents at 5pm in Wellington from 89.16 cents at the start of the week, though down from 90.76 cents yesterday. The local currency fell to 81.92 US cents at 5pm from 82.16 cents at 8am and 82.07 cents yesterday ahead of key US employment figures.

Economic data this week has reinforced the view that while New Zealand’s economic recovery takes hold, Australian growth is stalling, raising the prospect of another rate cut by Australia’s central bank. Traders are betting the RBA will hike interest rates by 16 basis points over the coming 12 months, compared to 107 points priced in for New Zealand’s central bank.

The RBNZ will review the official cash rate in its final monetary policy statement for the year next week, and is expected to keep the key rate at 2.5 percent while acknowledging more signs of growth in the economy.

“There’s a lot of good news to come out of New Zealand and more bad news to come out of Australia, suggesting the kiwi might go a little higher,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “Overall, we should get a slightly more positive tone” from the RBNZ’s review next week, he said.

The kiwi is heading for a 0.8 percent weekly gain against the greenback ahead of the release of US non-farm payrolls, which are expected to show jobs growth in the world’s biggest economy. Traders are paying close attention to US labour reports, with the Federal Reserve monitoring employment as one of bellwether measures on paring back its asset purchase programme.

A BusinessDesk survey of nine strategists and traders on Monday predicted the kiwi would trade between 79.80 US cents and 83.50 cents this week. Seven expected the currency to advance while two said it might fall.

The European Central Bank yesterday kept its key rate at 0.25 percent, while giving no indication of whether it will add more stimulus or not, and the Bank of England kept policy unchanged. The kiwi fell to 59.96 euro cents from 60.40 cents yesterday, and edged up to 50.17 British pence from 50.01 pence.

The local currency dropped to 83.44 yen from 84 yen yesterday. The trade-weighted index fell to 76.98 from 77.29 yesterday, and is heading for a 1 percent weekly gain.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news