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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news