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 0.7862 0.0034 0.43%
AUD 0.8922 -0.0019 -0.21%
EUR 0.6201 0.0013 0.21%
GBP 0.4892 0.0009 0.18%
HKD 6.0982 0.0262 0.43%
JPY 84.9280 0.2810 0.33%

Commods

Commodity Price Change Time
Gold Index 1228.6 -9.570 2014-10-23T00:
Oil Brent 86.8 0.380 2014-10-23T00:
Oil Nymex 82.0 1.530 2014-10-23T00:
Silver Index 17.1 -0.073 2014-10-23T00:

Indices

Symbol Open High Last %
NZX 50 5292.8 5344.4 5292.8 0.77%
NASDAQ 4427.4 4475.6 4382.9 1.60%
DAX 9008.6 9044.9 9047.3 -0.53%
DJI 16468.1 16767.5 16614.8 0.38%
FTSE 6419.1 6419.1 6419.1 -0.48%
HKSE 23311.9 23352.6 23333.2 -0.13%
NI225 15354.4 15377.0 15139.0 1.01%