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

 

Xero Approves: No More Need For Written Signatures On Tax Returns

The passing of legislation that will allow Inland Revenue to accept electronic signatures will free up accountants and others from an outdated system. More>>

ALSO:

Budget Building Battle: Bill English Blames Council On Housing

The Nation: Finance Minister blames Auckland Council for housing shortage, saying it is responsible for land, housing and infrastructure supply in the city, while government provides rental subsidies... More>>

ALSO:

Megiaglommeration: NZME And Fairfax Apply For Authorisation To Merge

The Commerce Commission has received an application from Wilson and Horton Limited (trading as NZME) and Fairfax NZ Limited seeking authorisation to merge their media operations in New Zealand. More>>

ALSO:

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news