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

 


NZ dollar weakens against Aussie before confidence survey

NZ dollar weakens against Aussie as traders await business confidence survey

By Tina Morrison

Feb. 11 (BusinessDesk) – The New Zealand dollar weakened against the Australian dollar ahead of reports today which may show the Australian economy is picking up pace.

The kiwi slipped to 92.31 Australian cents at 8am in Wellington from 92.54 cents at 5pm yesterday. The local currency was little changed at 82.62 US cents from 82.75 cents yesterday as investors await the inaugural testimony of new Federal Reserve chairman Janet Yellen.

Australia’s central bank this month changed its easing bias to neutral, signalling an end to rate cuts this cycle, following upbeat inflation and business confidence reports. Investors will be looking to Australian reports at 1:30pm New Zealand time today on home loans, house prices and business confidence for the latest gauge on Australian economic activity.

“Today, the key for the AUD will be the release of the NAB business survey,” Kymberly Martin, markets strategist at Bank of New Zealand, said in a note. “If December’s 2 ½ year high on business conditions can be sustained, it may instil further confidence in the market that the RBA is indeed ‘done’ with its rate cutting process.”

Traders are pricing in about 15 basis points of increases to Australian interest rates in the next year, according to the Overnight Swap Curve.

Speculative traders are heavily short the Australian dollar, meaning they bet the currency will fall, so a solid business survey is the biggest risk for the cross rate today, BNZ’s Martin said.

Investors are looking ahead to tonight when Yellen makes her first appearance before US lawmakers as head of the Fed. Analysts are keen to hear her policy and economic views and expect she is likely to continue the Fed’s plan to taper its US$65 billion a month quantitative easing programme by US$10 billion a month.

The New Zealand dollar fell to 84.41 yen from 84.73 yen yesterday. Japan has a bank holiday today in observance of National Foundation Day.

The kiwi dropped to 60.57 euro cents from 60.74 cents yesterday after a Sentix report showed Eurozone investor confidence unexpectedly improved in February to its highest in almost three years, as the current conditions reading turned positive for the first month since August 2011.

The local currency eased to 50.37 British pence from 50.43 pence yesterday. The trade-weighted index fell to 77.88 from 78.05 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news