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

 


NZ dollar falls on December inflation outlook, quake flurry

NZ dollar falls on December inflation outlook, quake flurry

By Paul McBeth

Jan. 20 (BusinessDesk) - The New Zealand dollar fell ahead of tomorrow’s December inflation figures which are seen as feeding into the Reserve Bank’s interest rate outlook, and after an earthquake in the lower North Island caused a brief flurry of selling.

The kiwi traded at 82.43 US cents at 5pm in Wellington from 82.46 cents at 8am, down from 82.62 cents on Friday in New York. The trade-weighted index declined to 78.37 from 78.61 last week.

New Zealand’s consumers price index is forecast to have fallen 0.1 percent in the final three months of 2013, for an annual rate of 1.5 percent, according to a Reuters survey. The RBNZ plans to hike interest rates this year to head off the threat of inflation, and investors will be watching the CPI to gauge when governor Graeme Wheeler might start tightening policy. Traders are betting the 2.5 percent official cash rate will rise 109 basis points over the coming 12 months, according to the Overnight Index Swap curve.

“CPI looms large – we know it’s a key figure, especially with all the talk being about interest rates at the moment,” said Alex Hill, head of dealing at HiFX in Auckland. “It might impact on the tone from Wheeler at the end of the month.”

Today’s 6.3 magnitude earthquake in the Lower North Island sparked a brief drop in the local currency, which it has since recovered, though Hill said the strength of the US dollar will keep the kiwi under pressure.

Real Estate Institute figures today showed New Zealand’s housing market continued to slow in December, with fewer sales and a decline in the median sale price in Auckland, which has been a key driver over the past year.

A BusinessDesk survey of six traders and strategists predicts the local currency will trade between 81.20 US cents and 84.20 cents this week. Four predict the kiwi will fall this week, while one expects it to gain and one sees it largely unchanged.

The kiwi fell to 85.72 yen at 5pm in Wellington from 86.20 yen last week, and declined to 93.87 Australian cents from 94.12 cents. It slipped to 60.93 euro cents from 61.04 cents on Friday in New York, and edged down to 50.22 British pence from 50.34 pence.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Suspected Black Widows: Table Grapes Withdrawn From Sale Following Spider Discovery

The Ministry for Primary Industries (MPI) is working closely with New Zealand produce retailers to have all imported Mexican table grapes withdrawn from sale following the discovery of spiders in a small number of consignments. More>>

ALSO:

Crown Accounts: 11-Month Surplus Beating Forecasts

Once minority interests’ share of revenues and expenses are removed, the total Crown’s operating balance before gains and losses (OBEGAL) was a surplus of $1,176 million in the eleven-month period. This compares to a forecast surplus of $193 million. More>>

ALSO:

Development: Screen Precinct Earmarked For Hobsonville Point

Auckland Council’s Auckland Development Committee has today passed a recommendation to create a screen precinct on council-owned land at Hobsonville Point. More>>

ALSO:

Scoop Business: NZ Business Confidence Plummets To Lowest Level Since GFC

New Zealands business confidence plunged to the lowest level in three years in the second quarter as companies became pessimistic about profitability expectations. More>>

ALSO:

Oceans: NZ Jumps Into International Shark Agreement

New Zealand has boosted the protection of sharks by signing the Memorandum of Understanding on the Conservation of Migratory Sharks. More>>

ALSO:

Insurance: EQC To Double Payout, Scrap Contents Insurance

New Zealand’s Earthquake Commission may double its payout amount, scrap contents insurance and process claims through private insurers under the government’s long-running review of funding and management of the state-run earthquake insurer. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news