Sharechat Logo

NZ dollar firm as focus turns to Australian CPI data

Wednesday 23rd January 2013

Text too small?

The New Zealand dollar is firmer ahead of Australian inflation data and after the Bank of Japan came out with an open-ended stimulus programme.

The kiwi was at 84.04 US cents at 8am, up from 83.99 cents at 5pm yesterday.

It fell to 74.51 yen, from 75.17 yen at 5.20pm on Tuesday after the Bank of Japan disclosed monetary policy initiatives.

The yen appreciated overnight, turning around a recent trend of weakness.

The kiwi would have fallen more on the yen cross if it had not been firm against the US dollar.

"The Bank of Japan delivered all the things expected but the negative was that they said that the asset purchases don't start to January next year. The timing was a disappointment," Imre Speizer, senior market strategist at Westpac said.

The central bank has been stimulating the Japanese economy by purchasing assets in in dribs and drabs.

"Now they have outlined a timetable and it continues forever until the economy improves -- and that is a powerful thing -- but we don't get it for another year," Speizer said.

The market is now focused on a core measure of inflation in the December quarter Australian consumers price index report, due out today.

"We are expecting a stronger number than market. Maybe people jumped on that theme," Mr Speizer said.

The market expectation is for the core measure to rise by 0.65 percent in the December quarter.

A strong core inflation number would dampen expectations for a rate cut in Australia in February.

The kiwi was at 79.53 Australian cents at 8am, down from 79.79 cents at 5pm on Tuesday.

It was at 63.09 euro from 62.93, and 52.94 British pence from 52.99.

The trade-weighted index was at 75.41 from 75.34

 

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:

MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite

IRG See IRG research reports