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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news