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

 


NZ dollar reaches 8-year high vs. Australian dollar

NZ dollar reaches 8-year high vs. Australian dollar after jobs figures disappoint

By Paul McBeth

Jan. 16 (BusinessDesk) - The New Zealand dollar climbed to a new eight-year high against its trans-Tasman counterpart after disappointing Australian jobs figures underlined the divergence between the neighbouring economies.

The kiwi rose as high as 94.52 Australian cents, trading at 94.45 cents at 5pm in Wellington from 93.40 cents yesterday. It was little changed at 83.29 US cents at 5pm from 83.32 cents at 8am and 83.36 cents yesterday.

The number of Australian jobs dropped by 22,600 in December, falling short of an expected gain of 10,000 in the month, and fuelled concerns about the country’s slowing economy. The Reserve Bank of Australia cut interest rates by 50 basis points to 2.5 percent last year in preparation for the looming peak of the nation’s resources boom, while at the same time New Zealand’s central bank laid the groundwork to start hiking rates this year.

“It was a big shock to the market and does keep alive the theme of kiwi outperforming the Aussie,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “There’s no reason why the kiwi can’t keep going – 95 would be quite a stretch in the near-term.”

Still, Westpac’s Speizer said the kiwi could reach parity with the Australian dollar by the end of the year. It isn’t Westpac’s house view, but the cross-rate has historically overshot fair value by 10 percent, which leaves open the possibility, he said.

The Dollar Index, a measure of the greenback against a basket of currencies, held on to gains in the local trading session, trading at 80.98 at 5pm in Wellington after US manufacturing figures the Federal Reserve’s Beige Book painted a better picture of the world’s biggest economy.

Traders were spooked by a weak December employment reading last week, which spurred fears the Fed might not pull back on its stimulus programme as quickly as anticipated.

The local currency rose to 87.33 yen at 5pm in Wellington from 87 yen yesterday, and was little changed at 61.12 euro cents from 61.13 cents yesterday. It edged up to 50.85 British pence from 50.76 pence yesterday. The trade-weighted index climbed to 79.09 from 78.87 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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