Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

NZ dollar climbs to 2-week high vs. A$ on Aust CPI

NZ dollar climbs to 2-week high vs. A$ as Australian inflation misses forecast, RBNZ looms

By Paul McBeth

April 23 (BusinessDesk) - The New Zealand dollar rose to a two-week high against its trans-Tasman counterpart after Australian inflation came in below expectations, leaving the Reserve Bank of Australia with room to keep interest rates on hold, while the local central bank prepares to hike rates tomorrow.

The kiwi rose as high as 92.65 Australian cents, the highest since April 10, trading at 92.53 cents at 5pm in Wellington from 91.72 cents yesterday. The local currency traded at 85.89 US cents at 5pm from 85.97 cents at 8am and 85.78 cents yesterday.

Australia’s consumer price index rose at an annual pace of 2.9 percent in the first quarter, according to the Bureau of Statistics, below economists’ forecast of 3.2 percent. The Australian dollar fell almost 1 US cent to 92.80 cents at 5pm in Wellington after the data, which leaves scope for the RBA to keep the target cash rate at 2.5 percent.

“The RBA will be quite comfortable on neutral, thus the Australian dollar got a little hammered,” said Sam Tuck, senior FX strategist at ANZ Bank New Zealand. “Australia’s CPI was lower than expected, and we saw the kiwi/Aussie go higher.”

Tomorrow the Reserve Bank of New Zealand announces rate review, where governor Graeme Wheeler is expected to raise the official cash rate a quarter-point to 3 percent, the second hike in as many months, as he looks to head off future inflationary pressures.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“In reality this is governor Wheeler’s second hike into the cycle that he’s telegraphed, you don’t really want to upset the apple cart,” Tuck said.

Traders will be watching for manufacturing indicators in the US and Europe in Northern Hemisphere trading after today’s China reading showed an improvement in the world’s second biggest economy.

The local currency was little changed at 88.07 yen at 5pm in Wellington from 88.05 yen yesterday, and traded at 62.19 euro cents from 62.18 cents yesterday. It was little changed at 51.04 British pence from 51.07 pence, and the trade-weighted index increased to 79.95 from 79.76 yesterday.

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.