Sharechat Logo

NZ dollar holds in recent range ahead of Australian data

Thursday 17th January 2013

Text too small?

The New Zealand dollar was trading near 84 US cents on Thursday morning after dipping in overnight trading as traders awaited Australian employment data today.

The kiwi was at 84.01 cents at 8am, little changed from 84.06 US cents at 5pm on Wednesday. It dipped toward 83.65 cents overnight.

A 1.1 percent rise in dairy prices in a Fonterra online auction and positive results from US banks bolstered sentiment in a market that had had a risk-off tone on Wednesday on confusing signals about monetary policy in Japan.

"The kiwi-US(dollar cross-rate) is well within the recent ranges," Dan Bell, currency strategist at HiFX said.

He said the kiwi could rise against the Australian dollar if the unemployment rate in Australia rises to more than the expected 5.4 percent in December. The data is due at 1.30pm NZ time.

At the moment the market isn't pricing in another rate cut from the Reserve Bank of Australia in February but if the unemployment rate is worse than expected the chances of a rate cut increase.

"If we see worse-than-expected employment figures we will see the New Zealand-Aussie cross push up and probably break through 80 Australian cents," Bell said.

It was at 79.49 Australian cents at 8am from 79.63 on Wednesday. HiFX expects the cross to trend higher in the next three months on interest rate differentials between the two countries.

The kiwi was at 74.39 yen from 74.02 yen on Wednesday. It was at 63.16 euro from 63.28 euro and at 52.46 British pence from 52.34. The trade-weighted index was at 75.32 from 75.30.

 

BusinessDesk.co.nz



  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:

NZ dollar becalmed, awaiting reasons to move
Huawei still in no-man's-land as Spark presses ahead with 5G build
Trustpower signals $11 mln profit boost from metering sale
Chorus defeats secrecy breach claim
Hedging losses drag Kiwi Property first-half net profit down 23.8%
Sky predicts revenue and earnings fall for FY20
Steel & Tube warns of further hit to first-half profit
A2 Milk's AGM should sort the bulls from the bears
Has NZ reached the lower limits of monetary policy?
NZ dollar maintains gains on China-US talks, local rate outlook

IRG See IRG research reports