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

 


NZ dollar at 3-week low vs. Aussie before RBA statement

NZ dollar falls to three-week low against Aussie ahead of RBA meeting today

By Tina Morrison

Feb. 4 (BusinessDesk) – The New Zealand dollar fell to its lowest in more than three weeks against its trans-Tasman counterpart ahead of a Reserve Bank of Australia decision on interest rates today.

The kiwi touched 91.85 Australian cents early this morning, its lowest since Jan. 10. The local currency was trading at 92.37 Australian cents at 8am in Wellington from 92.70 cents at 5pm yesterday. The New Zealand dollar slipped to 80.92 US cents from 81.16 cents yesterday.

The New Zealand dollar has slid against the Aussie after touching an eight-year high of 95.31 cents last month. Traders are speculating the Reserve Bank of Australia may remove its easing bias at its meeting this afternoon following stronger inflation data, narrowing the yield advantage with New Zealand, where rates are expected to rise next month.

“The key for the NZD/AUD cross today will be the meeting of the RBA,” Kymberly Martin, market strategist at Bank of New Zealand, said in a note. “It is widely expected to remain on hold and further soften its easing bias after recent improvement in Australian data.”

BNZ believes the kiwi-Australian cross rate has already reached its cyclical high above 95 Australian cents. There is currently buyer support in the 91.50-91.70 cent range, Martin said.

The Reserve Bank of Australia releases its decision at 4:30pm New Zealand time. The bank is expected to keep its benchmark rate at 2.5 percent, the same as New Zealand’s.

Still, there is a risk that the RBA may maintain its easing bias with ANZ Bank New Zealand saying markets risk disappointment.

In New Zealand, Prime Minister John Key is scheduled to speak today about New Zealand and the global economy while the ANZ commodity price index for January will be published at 1pm.

The New Zealand dollar dropped to a 12-week low of 81.74 yen as investors favoured the safe haven Japanese currency amid concern about volatility in emerging markets. The local currency was trading at 81.84 yen at 8am in Wellington from 83.08 yen yesterday.

The kiwi slipped to 59.86 euro cents from 60.17 cents yesterday and advanced to 49.64 British pence from 49.39 pence after a report showed the UK PMI declined more than expected. The trade-weighted index dropped to 76.70 from 77.09 yesterday, extending its decline so far this year to 1.8 percent.

(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