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

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news