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

 


NZ dollar hits more-than 2 yr high vs. Australian; RBA looms

NZ dollar hits more-than 2 year high vs. Australian as RBA meeting looms

By Paul McBeth

Feb. 4 (BusinessDesk) - The New Zealand dollar rose to a 2 ½-year high against the Australian dollar before the Reserve Bank of Australia’s monetary policy review tomorrow, while largely ignoring Prime Minister John Key’s comment that the kiwi is overvalued against the greenback.

The kiwi rose as high as 81.39 Australian cents, the highest since July 2010, and traded at 81.10 Australian cents at 5pm in Wellington from 81.22 cents on Friday in New York. The currency traded at 84.56 US cents at 5pm from 84.53 cents last week.

The RBA is expected to keep the target cash rate at 3 percent when the board reviews the benchmark rate tomorrow. That comes ahead of new forecasts, which may initiate a future cut if the projections show the world's 12th biggest economy is slowing down as its resources boom crests a peak.

"That cross-rate is very interest rate sensitive," said Peter Dragicevich, currency strategist at Commonwealth Bank of Australia in Sydney. "Expectations the RBA could do further policy easing will help the kiwi to outperform the Aussie in the near-term."

The RBA’s cash rate is 50 basis points higher than New Zealand's benchmark interest rate.

At his weekly post-Cabinet press conference, New Zealand PM Key, a former FX trader, said the kiwi is "a bit overvalued" against the greenback, "but the Australian dollar at 81 cents is not far out of the trading band."

New Zealand's Treasury department expects to see improved economic growth in the fourth quarter and first quarter, according to its latest monthly update. The domestic economy is expected to piggy-back on the Canterbury rebuild as it ramps up this year, and is also being supported by strong prices for raw materials.

The ANZ Commodity Price Index today showed locally produced raw materials attracted 10-month high prices, led by gains in pelts, logs and skim milk powder, rising 0.3 percent last month.

The kiwi dollar may extend its rally this week as investors continue to search out higher returns, with five strategists surveyed by BusinessDesk picking a bias to the topside of a 83.50 US cents to 85.50 cents trading range.

The local currency was almost unchanged at 78.39 yen from 78.38 yen on Friday in New York, and inched up to 62.02 euro cents from 61.97 cents. It traded at 53.87 British pence from 53.86 pence last week.

The trade-weighted index was at 76.16 at 5pm in Wellington from 76.13 last week.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news