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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news