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

 


NZ dollar falls vs. A$ after strong Australian data

NZ dollar falls vs. A$ after strong Australian trade, retail figures

By Paul McBeth

March 6 (BusinessDesk) - The New Zealand dollar fell against its trans-Tasman counterpart after stronger than expected Australian trade and retail data sapped enthusiasm for the nation’s central bank to cut interest rates.

The kiwi fell to 93.38 Australian cents at 5pm in Wellington from 93.63 cents yesterday. It traded at 84.19 US cents at 5pm from 84.22 cents at 8am, up from 83.90 cents yesterday.

Australian retail sales grew 1.2 percent in January, beating estimates for 0.5 percent growth, and it posted a trade surplus of $1.43 billion compared to expectations of $100 million, according to the Bureau of Statistics. Traders are betting the Reserve Bank of Australia will hike the target cash rate 14 basis points over the coming year, having previously priced in a reduction of 3 basis points, indicating an outside chance of another cut.

“It was very very very strong Aussie data – that’s two days in a row. If you’re still hanging on for an RBA rate cut you’re going to be sorely disappointed,” said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. “We’ve probably seen the top in the kiwi/Aussie.”

New Zealand figures today showed Auckland house sales fell 15 percent in February from the same month a year earlier, while the average sale price rose to $678,533 from $647,207 in January.

Buoyant property markets in Auckland and Christchurch prompted the Reserve Bank to impose lending restrictions on home loans with sub-20 percent deposits, as a means to delay tighter monetary policy. Governor Graeme Wheeler is widely expected to start hiking rates at next week’s meeting.

Traders will be watching US jobs figures on Friday in Washington which will likely show some weakness due to the harsh winter weather experienced by the world’s biggest economy. Traders are currently expecting an extra 150,000 jobs were added to non-farm payrolls in February.

The kiwi rose to 61.34 euro cents from 61.08 cents yesterday amid speculation the European Central Bank may increase stimulation when it meets today in Brussels.

The local currency was little changed at 50.39 British pence from 50.32 pence yesterday leading in to the Bank of England meeting where no change is expected.

The kiwi climbed to 86.42 yen from 85.71 yen yesterday. The trade-weighted index rose to 79.05 from 78.83 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news