Kiwi firm as focus turns to Australian CPI data

The New Zealand dollar is firmer ahead of Australian inflation data and after the Bank of Japan agrees to 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 yesterday 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, says.

The central bank has been stimulating the Japanese economy by buying assets 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 says.

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

A strong core inflation figure 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 yesterday. 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)

This article is tagged with the following keywords. Find out more about My Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7338 0.0008 0.11%
AUD 0.9278 -0.0003 -0.03%
EUR 0.6493 -0.0001 -0.02%
GBP 0.4840 0.0000 0.00%
HKD 5.6882 0.0060 0.11%
JPY 86.3910 0.3030 0.35%

Commods

Commodity Price Change Time
Gold Index 1285.9 -6.240 2015-01-28T00:
Oil Brent 49.6 -1.150 2015-01-28T00:
Oil Nymex 44.5 -1.700 2015-01-28T00:
Silver Index 18.1 0.000 2015-01-28T00:

Indices

Symbol Open High Last %
NZX 50 5794.8 5818.4 5794.8 0.41%
NASDAQ 4740.7 4742.1 4681.5 -0.93%
DAX 10719.4 10728.8 10628.6 0.78%
DJI 17402.9 17484.4 17387.2 -1.13%
FTSE 6811.6 6863.0 6811.6 0.21%
HKSE 24800.0 24983.9 24807.3 0.22%
NI225 17666.9 17703.1 17795.7 -0.70%