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

 


NZ dollar drops vs. A$ after upbeat RBA governor speech

NZ dollar drops to three-week low vs. A$ after upbeat speech from RBA’s Stevens

By Tina Morrison

March 27 (BusinessDesk) – The New Zealand dollar dropped to a three-week low against its trans-Tasman counterpart after Reserve Bank of Australia governor Glenn Stevens delivered an upbeat speech about prospects for the Australian economy and didn’t try to “jawbone” the nation’s currency lower.

The kiwi touched a low of 93.07 Australian cents this morning, and was trading at 93.10 cents at 8am in Wellington from 93.59 cents at 5pm yesterday. Australia’s currency rose to a four-month high of 92.44 US cents overnight and the New Zealand dollar was pulled along with it, touching a week-high of 86.20 US cents overnight to trade at 85.95 cents at 8am, from 85.87 cents at 5pm yesterday.

The Australian dollar was the best performing major currency tracked by Reuters overnight after governor Stevens, speaking at an investor conference in Hong Kong last night, pointed to early signs the nation is in a transition from mining-led growth to domestic consumption. Stevens didn’t repeat previous comments that the Aussie was overvalued.

“AUD continues to strengthen with optimism over rebalancing growth and a lack of ‘jawboning’ by RBA governor Stevens driving strength,” ANZ Bank New Zealand strategist Carrick Lucas and senior FX strategist Sam Tuck said in a note. “Markets took the lack of ‘jawboning’ on the AUD as a green light to continue AUD appreciation. Also taken as a positive were the ‘promising signs’ on growth rebalancing away from mining investment.”

The kiwi dollar will probably trade between 93 Australian cents and 93.70 cents today, ANZ said.

New Zealand Reserve Bank deputy governor Grant Spencer will speak to the investment conference on macro-prudential policy at 5:30pm New Zealand time tonight.

The release of New Zealand’s trade balance for February, due at 10:45am, is unlikely to change the theme of New Zealand dollar strength today, ANZ said.

The kiwi reached a new four-month high of 62.49 euro cents overnight and was at 62.34 cents at 8am from 62.16 cents yesterday after European Central Bank officials signalled a softening of monetary policy earlier this week.

The local currency slipped to 51.85 British pence from 51.94 pence yesterday and weakened to 87.72 yen from 87.83 yen. The trade-weighted index was little changed at 80.18 from 80.16 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news