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

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news