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

 

NZ dollar gains after Australian business conditions lift

NZ dollar gains after Australian business conditions lift, RBNZ looms

Sept. 8 (BusinessDesk) - The New Zealand dollar rose ahead of the Reserve Bank's statement on Thursday and after an Australian survey showed improving business conditions even while business confidence fell, giving traders more confidence economic growth across the Tasman won't collapse.

The kiwi rose to 62.76 US cents as at 5pm in Wellington, from 62.67 cents late yesterday. The trade-weighted index was little changed at 68.49 from 68.54 yesterday. The New Zealand dollar slipped to 90.21 Australian cents from 90.54 cents yesterday.

National Australia Bank's monthly survey showed business conditions rose 5 points to +11 in August, as trading and profitability grew, even while business confidence fell to +1, the lowest in two years. The survey stoked confidence the Australian economy can withstand the headwinds of a weaker mining sector and lower terms of trade, although it also indicated concerns about the strength of demand from China, Australia's biggest market. China today reported a trade surplus of 368 billion yuan, or US$57.8 billion, in August as imports dropped 14.3 percent, outpacing a 6.1 percent decline in exports.

"Overall the market greeted the confidence survey favourably," said Michael Johnston, senior trader at HiFX. Investors are "sitting on the sideline waiting for the RBNZ. It is fully priced in that they are going to cut interest rates by 25 basis points, so there's a good chance of a rally" in the kiwi after the statement.

Still, Johnston said the longer-term trend in the kiwi is still down and any rally would be an opportunity for importers to sell. HiFX sees the kiwi dollar falling below 55 US cents in the next six to 12 months on a slower pace of growth in the domestic economy, the risk that the El Nino weather pattern reduces farm output next summer, and a backdrop of the US gradually raising interest rates.

Traders have put 78 percent odds of Reserve Bank governor Graeme Wheeler cutting the official cash rate a quarter point to 2.75 percent on Thursday, as economic growth slows following a slump in dairy prices, the nation’s largest export commodity.

The kiwi fell to 55.95 euro cents from 56.24 cents yesterday and fell to 40.95 British pence from 41.25 pence yesterday. It declined to 74.71 yen from 74.84 yen, and rose to 3.9973 yuan from 3.9905 yuan.

The two-year swap rate was unchanged at 2.80 percent and 10-year swaps fell 1 basis point to 3.60 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Foodstuffs: New World & Four Square Trial NZ’s First Grocery Delivery Offer With Uber Eats

New World & Four Square have partnered with Uber Eats to unlock the first grocery offering available on the platform in Aotearoa. For New World and Four Square it’s yet another way to put New Zealanders first, particularly with those inevitable last-minute grocery needs... More>>

Digitl: Download 2.0 – Vodafone Wi-Fi Calling hits early milestone
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

Energy Resources Aotearoa: New Law On Decommissioning Could Be Costly Overkill
A new law on decommissioning oil and gas fields passed by Parliament today has good intentions but is overkill, according to Energy Resources Aotearoa. "We strongly support operators taking responsibility and paying the costs for decommissioning, which is what all good operators do," says chief executive John Carnegie... More>>



ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>


PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>

NZ Skeptics Society: Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon

Every year the New Zealand Skeptics presents its awards to people and organisations who have impressed us or dismayed us, and this year it’s been hard to pick our winners because there have been so many choices!.. More>>



REINZ: Sales Volumes Leveling Out

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 44 fewer lifestyle property sales (-2.6%) for the three months ended October 2021 than for the three months ended September 2021... More>>