Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar trades at 3-week low as RBNZ rate cut weighed

NZ dollar trades at 3-week low as central bank seen with room to cut rates

Nov. 12 (BusinessDesk) - The New Zealand dollar traded near a three-week low amid speculation a weak jobs market gives the Reserve Bank more room to cut interest rates to stoke the economy, eroding the yields available in the local currency.

The kiwi dollar fell to 81.39 US cents from 81.45 cents in late New York trading on Friday. The trade-weighted index was at 72.96 from 72.94.

Markets are pricing in a 22 percent chance of a cut to the official cash rate at the central bank’s next meeting on Dec. 6, based on the Overnight Interest Swap curve. A rising jobless rate of 7.3 percent last week drove down the kiwi dollar though on a trade-weighted basis it is still above the 72 level the bank had forecast for the fourth quarter of this year.

“With the risk of an RBNZ interest rate cut now very real, the NZD/USD topside looks unlikely to be tested,” said Mike Jones, currency strategist at Bank of New Zealand. Still, with signs of an improving global economy “we doubt we’re on the cusp of a substantial downward correction.”

Locally, key data out this week is quarterly retail sales on Wednesday, with growth in sales forecast to have slowed to 0.5 percent, according to a Reuters survey, from 1.3 percent three months earlier.

The kiwi dollar fell to 78.23 Australian cents from 78.38 cents and traded at 64 euro cents from 64.06 cents.

The New Zealand dollar slipped to 51.19 British pence from 51.23 pence and was at 64.68 yen from 64.71 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news