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

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news