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

 


NZ dollar continues drop against Aussie dollar

Wednesday 11 January 2017 05:00 PM

NZ dollar continues drop against Aussie dollar, down 2% since Jan 3 high

By Edwin Mitson

Jan. 11 (BusinessDesk) - The New Zealand dollar traded at its lowest level against the Australian dollar since November, and has fallen more than 2 percent since the start of 2017 as it broke out of a key trading range.

The kiwi traded at 94.77 Australian cents at 5 pm in Wellington, down from 94.81 cents yesterday and 95.38 cents on Monday. It had reached as high as 96.74 Australian cents on Jan 3.

Currency traders said the move reflected the different markets Australia and New Zealand have with China, with Australia benefiting from a resurgence in the price of iron ore off the back of Chinese demand. However the Australian government has suggested the current high price is unlikely to be sustained, and mining companies have been wary about ramping up capital spending in case demand falls away.

Chris Weston, Chief Market Strategist at IG Markets in Sydney said Australian dollar bulls had regained control of the trade.

"Between late November through to early parts of January, there was a lot of supply coming into the market when one Australian dollar bought $1.05 kiwi dollars. Any kind of moves above there were smacked down straight away by people supplying the market with kiwis. But then on Tuesday, we saw a really strong move through the $1.05, and that’s taken out all the supply"

"We’ve broken out the top end of that range, we’ve taken out supply, and we’ve seen a strong conviction behind that buying,” he added.

The local currency was trading at 69.97 US cents at 5 pm in Wellington, from 69.85 US cents at 8 am and 70.38 US cents twenty-four hours ago. The trade-weighted index dropped to 77.45 from 77.83 this time yesterday. Currency markets are largely waiting for President Trump's first press conference since his election victory, expected to be held in the early hours of Wednesday morning, local time.

The kiwi fell against the British pound, falling to 57.46 pence from 57.84 pence yesterday, with sterling steadying after a sell-off driven by British Prime Minister Theresa May's comments that the UK was willing to cede access to the European single market in order to secure its borders.

Against the Chinese yuan, the kiwi fell to 4.8432 yuan from 4.8741 yuan twenty-four hours ago. It dropped slightly against the Japanese yen, to 81.12 yen from 81.17 yen. It was flat against the Euro at 66.30 euro cents.

New Zealand's two-year swap rate was unchanged at 2.35 percent, while the 10-year swap rate rose 1 basis point to 3.38 percent.

(BusinessDesk)

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

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
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news