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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news