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

 


NZ dollar rises after RBA rate cut, before RBNZ

NZ dollar creeps higher as RBA rate cut eases concerns for Australian economy

By Paul McBeth

Dec. 5 (BusinessDesk) - The New Zealand dollar followed its Australian counterpart higher after the Reserve Bank of Australia cut interest rates in line with expectations and soothing fears the world's 12th biggest economy could be in for a big fall as its mining boom peaks.

The kiwi increased to 82.243 US cents at 8am in Wellington from 82.29 cents yesterday, following the Australian dollar's lead, which rose to US$1.0472 from US$1.0446. The kiwi was little changed at 78.68 Australian cents from 78.73 cents yesterday.

The RBA cut the target cash rate a quarter point to 3 percent, the lowest level since the depths of the global financial crisis and matching a five-decade low. Governor Glenn Stevens said the bank has started seeing signs of looser monetary policy emerge, and was seen as a move to foster growth outside the resources sector which has underpinned the economy in recent years. Government figures today are expected to show the Australian economy grew 0.6 percent in the September quarter.

"The accompanying statement highlighted the negatives, but there were no new negatives and markets are in the mood to take no news as good news," said Kymberly Martin, strategist at Bank of New Zealand in Wellington. "If the RBNZ comes out (tomorrow) and points to the obvious things about the economy and provides no new fears, we might have a similar reaction."

The RBA's review comes two days before the Reserve Bank of New Zealand reviews monetary policy, with governor Graeme Wheeler tipped to keep the official cash rate on hold at 2.5 percent. That would cut Australia's interest rate advantage to half a percentage point.

BNZ's Martin said the currency may trade between 82 US cents and 82.60 cents today.

Dairy prices at Fonterra Cooperative Group's online auction fell 2 percent, with the exporters increasing the supply available. The sale came a day after ANZ New Zealand data showed New Zealand commodity prices rose for a fifth month in November and after government figures this week showed the country's terms of trade fell to a three-year low in the September quarter as a strong currency eroded returns on dairy exports.

Global investor sentiment was flat as US policymakers continued to cling to their partisan colours as they struggle to avert the US$607 billion fiscal cliff of spending cuts and tax increase. The latest deal put forward by senior Republican and House of Representatives Speaker John Boehner was shot down within an hour by the White House, and highlighted fractures within the Republican party.

New Zealand's trade-weighted index was unchanged at 73.45, and the kiwi was little changed at 67.51 yen at 8am in Wellington from 67.57 yen yesterday. The currency traded at 62.95 euro cents from 62.99 cents yesterday, and increased to 51.20 British pence from 51.09 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news