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

 


NZ dollar holds gains as Aust capex beats expectations

NZ dollar holds gains as Aust capex beats expectations, Fonterra buoys sentiment

By Paul McBeth

Aug. 28 (BusinessDesk) - The New Zealand dollar held gains today after Australian capital expenditure figures beat expectations, adding to optimism about the local economy after Fonterra Cooperative Group affirmed its forecast payout to farmers and signed up to a deal to distribute its products into China.

The kiwi rose to 83.91 US cents at 5pm in Wellington from 83.75 cents at 8am and 83.67 cents yesterday. The trade-weighted index was 79.06 from 79 yesterday.

Australian capital expenditure rose 1.1 percent in the second quarter, beating expectations for a 0.5 percent contraction, and first-quarter figures were revised up. That stoked demand for the Australian dollar, which dragged its New Zealand counterpart higher. The kiwi fell to 89.05 Australian cents from 89.77 cents after the capital expenditure figures.

"We had private capex out of Australia - the last couple were really quite weak, but this one was better than expected," said Michael Johnston, senior trader at HiFX in Auckland. "Short-term the kiwi could push up higher, but it's still a sell on rallies" over the medium-term, he said.

The kiwi was already supported by Fonterra's announcement yesterday affirming its forecast payout to farmers for the 2015 season, and announcing a joint venture with China's Beingmate to sell infant formula into the world's most populous nation. Westland Milk, a smaller rival to Fonterra, today cut its forecast payout for the 2015 seasons, citing falling global dairy prices and the strong kiwi dollar.

HiFX's Johnston said month-end positioning would also help support the Australian and New Zealand currencies as major fund managers tilted their portfolios.

Traders will be looking at US housing, employment and GDP data in coming days to gauge the strength of the world's biggest economy. A recent string of upbeat US data has underpinned growing expectations the Federal Reserve will start raising interest rates earlier and faster than anticipated.

The local currency was little changed at 87.04 yen at 5pm in Wellington from 87.02 yen yesterday, and edged down to 63.52 euro cents from 63.57 cents. It was unchanged at 50.55 British pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news