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

 


NZ dollar rises as buoyant economy cements rate hike view

NZ dollar rises as buoyant economic news cements chance of rate hike next month

By Tina Morrison

Feb. 28 (BusinessDesk) – The New Zealand dollar was the best performing major currency overnight, nudging above 83.90 US cents, as a raft of positive economic news cemented the likelihood of the Reserve Bank raising interest rates next month.

The kiwi touched a high of 83.91 US cents this morning, the fourth session this year it has risen above 83.90 cents, making it the best performer of major currencies tracked by Reuters. The New Zealand dollar was trading at 83.77 US cents at 8am in Wellington, from 83.24 cents at 5pm yesterday. The trade-weighted index advanced to 83.77 from 83.24 yesterday.

The local currency was buoyed by positive economic news yesterday, including a record forecast payout to dairy farmers by Fonterra Cooperative Group, estimated to add $500 million to the economy, positive trade data which has pushed the annual trade balance into surplus for the first time since March 2012 and the highest monthly gain in migrants since May 2003. The latest news adds to expectations that the Reserve Bank will become the first developed economy to hike interest rates next month.

“Yesterday New Zealand news continued to put the nation at the top of economic status,” Peter Cavanaugh, client advisor at Bancorp Treasury Services, said in a note. “The New Zealand dollar is up across the board … as the New Zealand economy and NZD maintains its ‘Rock Star’ status.”

In New Zealand today, traders will be eyeing a report on building permits and the ANZ business confidence survey.

The New Zealand dollar advanced against the Australian dollar, rising to its highest level this month, after weaker-than-expected Australian capital expenditure data yesterday raised concerns about a recovery in the Australian economy. Traders are now betting there is a 5 percent chance the Reserve Bank of Australia will cut interest rates further, according to the Overnight Index Swap curve.

The kiwi touched a high of 93.70 Australian cents this morning and was trading at 93.43 cents at 8am from 93.08 cents yesterday.

The New Zealand dollar rose to 61.09 euro cents from 60.79 cents yesterday. Traders are awaiting a report on European February inflation later today as they weigh the likelihood of the European Central Bank adding more stimulus to the region’s economy when it meets next week.

The local currency advanced to 50.19 British pence from 49.90 pence yesterday and gained to 85.59 yen 85.23 yen ahead of a the release of several key Japanese economic indicators today, including employment, inflation and industrial production.

Later today, reports are due on US GDP and consumer confidence while over the weekend, traders will be keeping an eye on the release of China’s official manufacturing PMI.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

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>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news