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
Most listened to
- Tourism Association head Chris Roberts explains why the accommodation industry will fight 150% council rates rises
- Competition lawyer Andy Matthews' rates Spark's chance of success with its Skyfone legal challenge
- Kiwibank CEO Paul Brock on rising mortgage book, falling profit
- Thincats’ Sunil Aranha on how Harmoney could cope in the competitive Australian market
- Nevil Gibson says Fitch Ratings has moved its main risk to the economy from dairy returns to house prices