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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news