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

 

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Planes: Jetstar Launches Regional Network

Jetstar, the Qantas Airways budget offshoot, launched its new regional network in New Zealand with special $9 one-way fares and has narrowed down its choices to five routes and four destinations - Nelson, Napier, New Plymouth, and Palmerston North. More>>

ALSO:

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news