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

 

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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