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

 


NZ dollar extends gain vs. A$ after RBA minutes

NZ dollar extends gain vs. A$ as RBA minutes, NZ govt forecasts show diverging economies

By Paul McBeth

Dec. 17 (BusinessDesk) - The New Zealand dollar extended its rally against its trans-Tasman counterpart as downbeat minutes to the latest Reserve Bank of Australia policy review and increasingly optimistic NZ government forecasts underlined the divergence between the two economies.

The kiwi rose as high as 92.69 Australian cents, a new five-year high, and traded at 92.59 cents at 5pm in Wellington from 92.40 cents yesterday. It gained to 82.82 US cents at 5pm from 82.55 cents at 8am, unchanged from 82.82 cents yesterday.

Minutes to the last RBA meeting showed the central bank retained an easing bias as the strength of the Australian dollar remained uncomfortably high, while New Zealand government forecasts showed a faster return to cash surplus as the economic recovery gathers speed. The yield on the New Zealand 10-year government bond was 4.76 percent, 51 basis points above its Australian equivalent.

“Interest differentials are getting pretty high now between the Aussie and kiwi,” said Chris Tennent-Brown, FX economist at Commonwealth Bank of Australia in Sydney. “The RBA doesn’t want to drop its easing bias, and clearly prefers that to come via the currency.”

Traders will be looking at the results of Fonterra Cooperative Group’s dairy auction on Tuesday in the US, before New Zealand third-quarter balance of payments on Wednesday, ahead of the Federal Reserve rate review and local gross domestic product on Thursday.

CBA’s Tennent-Brown said “the Fed could eclipse everything” though a strong GDP print would bear out on the New Zealand/Australian dollar cross-rate.

“Whatever the Fed does will be a big driver, though we think the US dollar should be pretty neutral after the Fed, with the majority of people expecting no change,” he said.

The local currency increased to 85.26 yen at 5pm in Wellington from 85.05 yen yesterday, and was little changed at 60.15 euro cents from 60.18 cents. It traded at 50.76 British pence from 50.78 pence yesterday. The trade-weighted index was little changed at 77.98 from 77.93 yesterday.

(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