Kiwi gains after weak Aussie inflation figures

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

(BusinessDesk)

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NZ Market Snapshot

Forex

Sym Price Change
USD 0.7837 -0.0018 -0.23%
AUD 0.9208 -0.0011 -0.12%
EUR 0.6300 -0.0004 -0.06%
GBP 0.5015 0.0020 0.40%
HKD 6.0774 -0.0117 -0.19%
JPY 92.9930 0.4130 0.45%

Commods

Commodity Price Change Time
Gold Index 1196.6 -2.970 2014-11-26T00:
Oil Brent 79.4 -0.640 2014-11-26T00:
Oil Nymex 73.7 -0.340 2014-11-26T00:
Silver Index 16.6 0.000 2014-11-26T00:

Indices

Symbol Open High Last %
NZX 50 5455.4 5474.7 5455.4 -0.57%
NASDAQ 4797.1 4810.9 4787.3 0.09%
DAX 9990.7 9990.7 9974.9 0.06%
DJI 17830.6 17893.4 17827.8 0.00%
FTSE 6723.4 6734.7 6723.4 -0.01%
HKSE 23982.3 24117.2 24004.3 -0.07%
NI225 17340.2 17471.9 17248.5 1.23%