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

 


NZ dollar heads for 2% weekly gain vs. A$

NZ dollar heads for 2% weekly gain vs. A$ amid divergent trans-Tasman economies

By Paul McBeth

Jan. 17 (BusinessDesk) - The New Zealand dollar is heading for a 2 percent weekly gain against its trans-Tasman counterpart after data showed the divergent neighbouring economies which will likely see interest rates move in New Zealand’s favour.

The kiwi rose to an eight-year high 94.80 Australian cents this week, trading at 94.11 cents at 5pm in Wellington from 92.22 cents at the end of last week, and 94.45 cents yesterday. It fell to 82.99 US cents at 5pm from 83.44 cents at 8am and 83.29 cents yesterday.

New Zealand’s economy is looking increasingly attractive to investors, with a survey this week showing business confidence at a 20-year high and house prices continuing to rise, while Australian jobs data surprised analysts with a drop in employment in December. Investors will watch New Zealand inflation figures next week to get a sense on how early central bank governor Graeme Wheeler will start hiking rates.

Traders are betting New Zealand’s central bank will lift interest rates 118 basis points over the coming 12 months, while the Reserve Bank of Australia is expected to cut its key rate by 7 basis points over the same period, according to the Overnight Index Swap curve.

“The kiwi/Aussie cross could be under a little bit of risk if we get a benign CPI on Tuesday,” said Martin Rudings, senior adviser at OMF in Wellington. “It’s probably vulnerable for a bit of a correction.”

OMF’s Rudings said there isn’t a huge amount of economic data next week, and traders are eyeing up the Federal Reserve and New Zealand Reserve Bank policy meetings the following week.

The local currency is unchanged against the greenback on the week, trading at 82.99 US cents at 5pm from 82.99 cents at last Friday’s New York close.

A BusinessDesk survey of nine traders and strategists on Monday predicted the kiwi would trade between 82 US cents and 84.30 cents this week. Eight predicted the currency would gain, and one expected it to decline.

The local currency slipped to 86.58 yen at 5pm from 87.33 yen yesterday, and slipped to 60.95 euro cents from 61.12 cents. It was little changed at 50.79 British pence from 50.85 pence yesterday.

The trade-weighted index fell to 78.78 from 79.09 yesterday, and is heading for a 0.9 percent weekly gain from 78.08 at last week’s close.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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