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

 


NZ dollar tracks A$ after RBA sees keeps rates on hold

NZ dollar tracks A$ after RBA sees signs of life, keeps rates on hold

By Paul McBeth

May 6 (BusinessDesk) - The New Zealand dollar was in lock-step with its trans-Tasman counterpart after the Reserve Bank of Australia kept the country’s key rate on hold, while acknowledging signs of life in the economy.

The kiwi traded at 93.66 Australian cents at 5pm in Wellington from 93.67 cents before the statement, up from 93.42 cents yesterday. The kiwi edged up to 86.90 US cents at 5pm from 86.86 cents at 8am from 86.57 cents yesterday.

The RBA kept the target cash rate at 2.5 percent, as expected, and kept its view rates will remain unchanged for a period of time. Governor Glenn Stevens kept his view the Australian dollar was high by historical standards, without trying to talk it down further, and acknowledged improvements in the labour market, credit growth and consumer demand. The Australian dollar was little changed at 92.81 Australian cents.

“It was slightly upbeat on the economy, noticing an improvement in the labour market, but said it would be some time before the unemployment rate fell substantially,” said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. “On the kiwi/Aussie cross, the recent trend is a resumption of the old trend in that the cross goes higher and I don’t think this RBA statement was strong enough in the positive direction to disturb that.”

Government figures earlier today showed Australia’s trade surplus was smaller than expected at a seasonally adjusted A$731 million in March, against expectations of A$1 billion.

Traders will be watching the dairy auction on Fonterra Cooperative Group’s GlobalDairyTrade platform tomorrow to see whether prices continue to fall, ahead of a speech by New Zealand Reserve Bank governor Graeme Wheeler on the significance of dairy to the economy. Employment figures later in the day will also be watched.

The local currency gained to 88.67 yen at 5pm in Wellington from 88.23 yen yesterday, and gained to 62.61 euro cents from 62.38 cents. It increased to 51.44 British pence from 51.30 pence yesterday. The trade-weighted index advanced to 80.71 from 80.42 yesterday.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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