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

 


NZ dollar hits 8-yr high vs. A$ as RBA talks down currency

NZ dollar touches fresh 8-year high vs. A$ as RBA talks down currency

By Tina Morrison

Jan. 27 (BusinessDesk) – The New Zealand dollar touched a fresh eight year high against its trans-Tasman counterpart after an Australian central bank member said the Aussie currency should be lower.

The kiwi hit 95.31 Australian cents over the weekend, its highest level since Dec. 1, 2005. The local currency was trading at 94.61 Australian cents at 8am in Wellington from 94.48 cents at 5pm on Friday.

The New Zealand dollar touched a two-week low of 82.08 US cents over the weekend as investors moved away from riskier assets. It was trading at 82.32 US cents at 8am from 82.11 cents at the New York close and 82.81 cents at 5pm on Friday.

Investors are favouring so-called safe haven assets such as the Japanese yen, Swiss franc, US dollar, US Treasuries and gold and selling riskier assets such as the high-yielding New Zealand dollar and stocks on concern about emerging markets. The local currency continued its ascent against the Australian dollar after Australian central bank board member Heather Ridout was quoted in the Wall Street Journal on Friday saying the Aussie had not fallen far enough.

“The kiwi/Aussie still looks very buoyant to the upside,” said Stuart Ive, senior adviser at OMF, who expects the cross rate may consolidate around 94.50 cents.

Ive said the kiwi is being impacted by an investor “flight to quality”.

“People are getting out of their riskier investments which may be stock market shares or a higher yielding currency and they are willing to sacrifice the gains that they could possibly get in there for safety as we enter a relatively uncertain moment in time,” he said. “There are still some adjustments taking place in global economies.”

The Federal Reserve has its first meeting of the year this week and may continue to taper its US$75 billion a month bond-buying programme. New Zealand’s central bank also meets this week, with some traders expecting an interest rate hike.

Australian banks are closed today for Australia Day.

In New Zealand, the Performance Services Index for December is scheduled for release at 10:30am. Auckland has a public holiday.

The New Zealand dollar touched a seven-week low of 83.91 yen over the weekend and was trading at
84.25 yen at 8am from 85.67 yen on Friday.

The kiwi touched a three week low of 59.89 euro cents at the weekend and was trading at 60.19 cents at 8am from 60.50 cents on Friday.

The local currency advanced to 49.94 British pence from 49.77 pence on Friday. The trade-weighted index slipped to 78.11 from 78.42 on Friday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news