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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news