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

 


NZ dollar climbs above 83 Aust cts for 1st time since Oct 09

NZ dollar climbs above 83 Aust cts for 1st time since Oct 2009 ahead of RBA meeting

By Paul McBeth

May 3 (BusinessDesk) - The New Zealand dollar climbed above 83 Australian cents for the first time since October 2009 as investors look for increasing returns on this side of the Ditch ahead of next week's Australian central bank.

The kiwi climbed to 83.02 Australian cents at 5pm in Wellington, near its 83.08 cents high, from 82.86 cents yesterday. The local currency gained to 85.22 US cents from 84.92 cents at 8am and 84.90 cents yesterday.

Investors have become more attracted to yields on offer in New Zealand as the local economic recovery gathers pace and as the Reserve Bank looks more likely to hike interest rates over the next year. The yield on the New Zealand 10-year government bond was 3.18 percent at 5pm in Wellington, 13 basis points above its Australian equivalent, even though Australia's target cash rate is higher than New Zealand's.

The Reserve Bank of Australia will review monetary policy next week, and traders are increasingly expecting a rate cut some time this year, with 62 basis points of reductions priced in over the coming 12 months, according to the Overnight Index Swap curve. That compares to pricing of 9 basis points of increases for the New Zealand central bank over the same time frame.

"A rate cut is starting to get more priced in, and from a commodity price point of view, agriculture and food prices have held up remarkably well" which benefits New Zealand's exports more than Australia, said Dan Bell, currency strategist at HiFX in Auckland. "The kiwi/Aussie cross rate has been in an uptrend for a while and is reversing a lot of the losses it's had over the last few years."

Investors are waiting for US employment figures in Washington on Friday, which are expected to show the world's biggest economy added about 140,000 jobs last month.

The local currency is heading for 0.6 percent weekly gain against the greenback. A BusinessDesk survey of strategists on Monday predicted it would trade between 83 US cents and 86 cents this week and was more likely to test the bottom of that range.

The kiwi rose to 65.18 euro cents from 64.46 cents yesterday after the European Central Bank cut its deposit rate a quarter-point to 0.5 percent as expected, and left the door open for further reductions.

The local currency rose to 54.88 British pence from 54.62 pence yesterday, and advanced to 83.51 yen from 82.57 yen. The trade-weighted index gained to 78.57 from 78.09 yesterday, and is heading for a 0.2 percent weekly decline.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

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