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

 


NZ dollar falls vs. A$ after upbeat Aust figures

NZ dollar falls vs. Aussie, gains against greenback after upbeat Australian figures

Feb. 11 (BusinessDesk) – The New Zealand dollar weakened against the Australian dollar as improved business confidence and signs of a pickup in housing reduced the prospects of interest rates cuts across the Tasman.

The kiwi fell to 92.11 Australian cents at 5pm in Wellington, from 92.31 cents at the start of the day and down from 92.54 cents yesterday. The New Zealand dollar rose to 82.96 US cents from 82.62 cents at 8am and from 82.75 cents yesterday.

National Australia Bank’s survey showed business confidence rose to +8 in January from +6 a month earlier, while its business conditions index rose to 4 from 3. Meantime, Australian government figures showed a 9.3 percent gain in house prices in the final quarter of 2013, while home loan approvals gained in December from a year earlier. Australia’s central bank this month changed its easing bias to neutral, signalling an end to rate cuts this cycle.

“The Australian data was pretty strong,” said Michael Johnston, senior trader at HiFX. “It made the market think there’s little chance of any near term rate cut by the RBA and it has caused the Australian dollar to be squeezed up, dragging the kiwi along with it.”

Investors are looking ahead to tonight when Federal Reserve chair Janet Yellen makes her first appearance before US lawmakers as head of America’s central bank. 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.

“If she’s more upbeat about the prospects of the US economy, you could see the kiwi come off,” Johnston said. “Anything with an 83 (US cents) on it is a pretty good level to be selling kiwi and buying US.”

The New Zealand dollar regained ground to 84.77 yen from 84.41 yen at the start of the day. Japan has a bank holiday today in observance of National Foundation Day.

The kiwi traded at 60.70 euro cents from 60.57 euro cents and was at 50.52 British pence, up from 50.37 pence at the start of the day and 50.43 pence yesterday. The trade-weighted index was at 78.05, returning to the levels of late yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news