The New Zealand dollar firmed against the Australian dollar after a weaker-than-expected inflation report increased the chances of an interest rate cut by the Reserve Bank of Australia.
The kiwi was at 79.78 Australian cents at 5pm, up from 79.53 Australian cents at 8am.
The aussie dollar weakened on news that the headline consumers price index rose 0.2 percent to an annual rate or 2.2 percent, which was less than the 0.4 percent quarterly rise for an annual rate of 2.4 percent expected by traders.
The next Reserve Bank of Australia cash rate announcement is on February 5. The central bank watches an average of two underlying inflation measures – the trimmed mean and weighted median – in the data series.
The market is now assessing the chances of a rate cut in February at 36 percent, up from 32 percent before the report, Joe Capurso, currency strategist at Commonwealth Bank of Australia, says.
The kiwi was at 84.05 US cents at 5pm, up marginally from 84.04 US cents at 8am and little changed from 83.99 cents at 5pm yesterday.
It weakened further against the Japanese currency, 74.48 yen from 75.17, was at 63.14 euro from 62.93 and 53.09 British pence from 52.99.
The trade-weighted index was at 75.45 from 75.34
This article is tagged with the following keywords. Find out more about MyNBR Tags
- LinkedIn too slow, too vague after hackers put logons up for sale – and you could still be at risk
- Briefcase: Litigation funders and the 23-year-old class action lawyer, the lawyer who embraces social media
- It's official – investors propel Auckland's rampant housing market
- Political week: Political groundwork rather than 'whizz bangs' the hallmark of Budget 2016
- Budget 2016: Landbankers choking Auckland's housing supply
Most listened to
- Budgets are not branches of the entertainment industry says NBR's Rob Hosking
- “In those big markets we’re more of a disrupter” – Don Braid on Mainfreight’s global growth path
- In Editor’s Insight, Nevil Gibson finds some nasty budget surprises in the tax area
- Westland milk boss and Fonterra’s chairman are both picking a turnaround in the milk market next season
- Grant Thornton partner Greg Thompson says the walls of secrecy in the tax system are starting to erode