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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news