20 Jan 2010

NZ dollar dips on unexpected inflation news

8:12 pm on 20 January 2010

The New Zealand dollar fell 1 cent to just under 73 US cents on Wednesday after inflation data came in weaker than expected.

The CPI fell 0.2 per cent in the fourth quarter, driven by lower food prices. Annual inflation now sits at 2 per cent.

On New Zealand's sharemarket, the benchmark NZX50 index closed flat at 3227.

Fletcher Building was down 4 cents to $8.03, Telecom was up 1 cents to $2.46, and Contact Energy rose 3 cents to $6.09.

Auckland Airport had no change at $1.90, while Air New Zealand lifted 5 cents to $1.21.

Sky City Entertainment was unchanged at $3.31 and Sky Television rose 1 cent to $5.17.

The Warehouse fell 9 cents to $3.79 and NZ Oil and Gas was down 1 cent to $1.61.

In the currency markets, the kiwi was trading at 5.20pm at 72.99 US cents, 79.50 Australian cents and 44.75 pence. The Trade Weighted Index stood at 66.33.

In Australia, the benchmark S&P/ASX200 index closed seven points higher, or 0.14%, at 4868.2 points, while the broader All Ordinaries index added 5.5 points, or 0.11%, to 4895.1 points.

On Wall Street overnight, the Dow Jones industrial average gained 115.78 points, or 1.09%, Standard & Poor's 500 Index rose 14.20 points, or 1.25%, and the Nasdaq Composite Index climbed 32.41 points, or 1.42%.