Sharechat Logo

NZ dollar little changed as investors focus on Aussie

Wednesday 12th January 2011

Text too small?

The New Zealand dollar was little changed today, while investors in Australia weighed the impact of the floods raging through Queensland against strong economic data.

Around 5pm the NZ dollar was at US75.92c, unchanged from 8am and up from US75.86c at 5pm yesterday.

The Australian dollar was firm at US98.54c at 5pm from US98.46c at the same time yesterday. Dealers said strong home loan and job vacancy data countered concerns about the impact of the floods.

Imre Speizer, senior market strategist for Westpac, said that the NZ dollar may decline to around US70c in the first few months of the year due to the strength of the US dollar.

But the New Zealand economic recovery will capture market attention and this could see the NZ dollar pass the previous post-float record high of US82c set in February 2008.

"Key drivers of growth will be stronger New Zealand commodity prices and low interest rates, as well as one-off factors such as the Canterbury earthquake reconstruction and the Rugby World Cup. We forecast GDP growth to exceed 4% in 2011," he said.

A stronger recovery in 2011 will see a rise in the official cash rate and flow through to lifts in mortgage interest rates. Higher interest rates will attract NZ dollar investors, pressuring the dollar higher.

The NZ dollar bottomed at a decade low against the aussie around A73.85c just before Christmas. It was at A77.02c at 5pm today from A77.01c at the same time yesterday.

The NZ dollar was at 63.10 yen at 5pm from 63.23 yen at 8am and 63.03 at 5pm yesterday.

The trade weighted index was 68.95 at 5pm from 68.99 yesterday.

 

NZPA



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report