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

 

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