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

 


NZ dollar gains vs. Aust after RBA leaves rates unchanged

NZ dollar gains vs. Aust after RBA leaves rates unchanged

By Paul McBeth

Feb. 5 (BusinessDesk) - The New Zealand gained against its Australian counterpart after the Reserve Bank of Australia kept interest rates on hold, while leaving a future cut on the table if slowing growth and inflation get out of hand.

The kiwi rose to 80.88 Australian cents at 5pm in Wellington from 80.66 cents immediately before the announcement, and down from 81.10 cents yesterday. The kiwi fell to 84.12 US cents from 84.46 cents at 8am and 84.55 cents yesterday.

The RBA kept the target cash rate at 3 percent today, with governor Glenn Stevens saying "substantial easing" through last year meant the board didn't need to cut further. Still, the central bank will "assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target over time," Stevens said. The RBA will update its economic forecasts later this week.

"It's negative for the Aussie by leaving the door open for a cut in March," said Imre Speizer, market strategist at Westpac Banking in Auckland. "The kiwi/Aussie cross may have another leg to it."

Speizer sees the kiwi rising to at least 82.60 Australian cents this year as the trans-Tasman economies trade places, with the New Zealand's recovery underpinned by the Canterbury rebuild and Auckland housing boom and the end of Australia's mining boom coming into view.

Adding to the lustre of New Zealand as an investment destination is its relatively high returns. The yield on New Zealand's 10-year government bond was 3.8 percent as at 5pm in Wellington, 29 basis points above its Australian equivalent.

Investors largely ignored New Zealand employment data showing a 0.5 percent increase in wage costs in the December quarter. That comes ahead of the household labour force survey on Thursday, which is expected to show a headline unemployment rate of 7 percent.

The kiwi dollar fell to 77.68 yen from 78.40 yen yesterday, and climbed to 62.35 euro cents from 62.03 cents. It declined to 53.40 British pence from 53.85 pence yesterday, and the trade-weighted index slipped to 75.95 from 76.16.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news