NZ dollar little changed as investors focus on aussie
The New Zealand dollar was little changed today, while investors in Australia weighed the impact of the floods raging through Queensland against strong economic data.
The New Zealand dollar was little changed today, while investors in Australia weighed the impact of the floods raging through Queensland against strong economic data.
Around 5pm the NZ dollar was at 75.92USc, unchanged from 8am and up from 75.86USc at 5pm yesterday.
The Australian dollar was firm at 98.54USc at 5pm from 98.46USc at the same time yesterday. Dealers said strong home loan and job vacancy data countered concerns about the impact of the floods.
Imre Speizer, senior market strategist for Westpac, said that the NZ dollar may decline to around 70USc in the first few months of the year due to the strength of the US dollar. But the New Zealand economic recovery would capture market attention and this could see the NZ dollar pass the previous post-float record high of 82USc set in February 2008.
"Key drivers of growth will be stronger New Zealand commodity prices and low interest rates, as well as one-off factors such as the Canterbury earthquake reconstruction and the Rugby World Cup. We forecast GDP growth to exceed 4% in 2011," he said.
A stronger recovery in 2011 will see a rise in the official cash rate and flow through to lifts in mortgage interest rates. Higher interest rates will attract NZ dollar investors, pressuring the dollar higher.
The NZ dollar bottomed at a decade low against the aussie around 73.85Ac just before Christmas. It was at 77.02Ac at 5pm today from 77.01Ac at the same time yesterday.
The NZ dollar was at ¥63.10 at 5pm from ¥63.23 at 8am and ¥63.03 at 5pm yesterday.
The trade weighted index was 68.95 at 5pm from 68.99 yesterday.
NZPA
Wed, 12 Jan 2011
Wed, 12 Jan 2011
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NZ dollar little changed as investors focus on aussie
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